TMI Blog1962 (6) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... suance of a notice dated 22nd August, 1960, asking the petitioner to produce accounts. The petitioner is a firm of planters, and owns cardamom estates in Lower Palnys, Madurai District. The estates are said to be situated in the interior and as it is difficult for the labourers to get their own provisions and grocery, the petitioner used to buy them and supply the same to the labourers as a matt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons were, therefore, not taxable. Against the impugned notice, the petitioner sought the aid of the Board of Revenue which, however, by its order dated 5th October, 1960, stated that the supply of goods to the employees involved transfer of property though it might be without accrual of any profit, and that such transactions would fall under the definition of "business" in section 2(d) and "sale" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dras[1954] 5 S.T.C. 216; I.L.R. 1955 Mad. 832. , that the transactions are not in the course of business, and therefore, the sales are not chargeable to sales tax. In that case, the assessee supplied food-grains for the benefit of its workmen and recovered their cost by debiting the value against their wages. There was an elaborate consideration of the word "business" and the learned Judges held t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stitute an activity a business for purposes of the Act, that it should be carried on with a motive to make profit. The effect of this new definition is only that actual accrual of profits is not required to constitute an activity a business. It follows, therefore, that the definition of business in the Madras General Sales Tax Act, 1959, has brought about no change to the exposition of the legal p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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