TMI Blog1955 (7) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... d a deed of partnership on the 7th of July, 1943, in and by which they had mutually agreed to become partners subject to terms contained in the deed. The deed provides inter alia that the partnership shall be in force for a period of five years from 20th May, 1943, and on the expiry of the period, for such further time as the partners may mutually agree. The partnership was dissolved on the 17th of December, 1951, by a memorandum of agreement entered into at Madras between the respondent and his brothers. It recites that the brothers have been carrying on partnership business under the name and style of Messrs. K. Janakiram Naidu and Sons, that disputes have arisen between them regarding the sharing of the assets and liabilities of the abov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied that there was a subsisting partner- ship during the year of assessment (1949-50) and until its dissolution on the 17th of December, 1951. The contract with the railway itself was entered in the name of the partnership and not in the individual name of the respondent. The contract was entered into on the 24th of November, 1949, during the subsistence of the partnership. The partnership was dissolved by a deed of dissolution on the 17th of December, 1951. It is not suggested that this deed of dissolution is a collusive transaction. So far as the railway is concerned, the contract was with the partnership. What has been urged by the learned Government Pleader is that the deed of partnership provides for a five year term and that there is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m, or any association which sells goods to its members is a dealer within the meaning of this clause." The Explanation to section 2(b) cannot be read distributively. The disjunctive comes after the word "firm" and so read "a firm" is a "dealer" within the meaning of section 2(b). Section 3 is the charging section, and it provides that "every dealer shall pay for each year a tax on his total turnover for such year". A combined reading of section 2(b) with its Explanation and section 3 leaves no room for doubt in our minds that it is the firm that is treated as a "dealer" and that must be assessed to tax. The learned Government Pleader then relied upon rule 19 of the General Sales Tax Rules, which reads as follows: "If a dealer or license ..... X X X X Extracts X X X X X X X X Extracts X X X X
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