Section 2 in The Government Trading Taxation Act, 1926
2. Liability of certain Governments to taxation in respect of trading operations.
(1)Where a trade or business of any kind is carried on by or on behalf of the Government of any part of His Majesty' s Dominions, that Government shall, in respect of the trade or business and of all operations connected therewith, all property occupied in India] and all goods owned in India] for the purposes thereof, and all income arising in connection therewith, be liable-(a)to taxation under the Indian Income- tax Act, 1922 , (11 of 1922 ) in the same manner and to the same extent as in the like case a company would be liable;(b)to all other taxation for the time being in force in India] in the same manner as in the like case any other person would be liable.
