TaxTMI 
TaxTMI 
1971 (7) TMI 139
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.... furnished give rise to two taxable events in the hands of the assessee, (i) when the assessee debited the value of purchases in the accounts of the principal, and (ii) when the assessee sold the goods so purchased in and out of Madhya Pradesh according to the instructions of the principal?" 2.. The Board of Revenue had made the reference initially by its order dated 18th September, 1967. However, this court by its order dated 23rd April, 1970, directed it to make a fresh statement of the case mentioning the relevant facts in detail on the basis of which necessary inferences have to be drawn. In compliance with that order, fresh statement of the case was drawn up by the Board of Revenue by its order dated 2nd September, 1970. 3.. The ....
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....purchases were made by him. These entries were recorded by him in the mal bahi. The assessee debited the accounts of the principals with the respective amounts of purchase and credited the accounts of the persons from whom he had made them. Simultaneously the assessee made payments to the sellers in cash and debited the accounts of the principals in the cash books with those amounts. Subsequently the assessee sent bijaks showing the amount of purchases exactly according to the price which was paid to the sellers and he separately charged amounts showing his remuneration for the services rendered, handling charges and expenses. The copies of the bijaks retained by the assessee were produced by him before the Board of Revenue for the first ti....
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....s Tax, M.P. v. Nandram Ramkaran[1971] 27 S.T.C. 527; 1971 J.L.J. 71., the facts were that the buying agent had purchased the goods in the name of the mills. However, the payment of the price was made by him and debited to the account of the mills and it was credited to the account of the mills when the money was received from the mills. The authority of the assessee to purchase was inferred from these circumstances and it was observed that the Tribunal was justified in coming to the conclusion that the assessee was acting as an agent on behalf of the mills as no circumstances had been brought out by the department which would indicate that the cotton purchased by the assessee was actually not supplied to the mills or that any price came fro....
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....ed by the sales tax authorities. However, merely because the veracity of the bijaks was not put to test it cannot be concluded that the bijaks are not genuine. If the sales tax authorities were not satisfied about the genuineness of the bijaks, they could send for the original bijaks which were sent by the assessee to his principals and if necessary could also record further evidence with a view to find out as to whether the bijaks were genuine or not. It is sufficient to observe that none of the sales tax authorities has found the bijaks produced to be non-genuine. 8.. The learned counsel for the department placed reliance on the decision of their Lordships in Bayyana Bhimayya and Another v. Government of Andhra Pradesh[1961] 12 S.T.C. ....