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(e) Piloting, hauling, mooring, remooring, hooking or measuring of vessels or any other service in respect of vessels and;

(f) Developing and providing subject to the previous approval of the Central Government, Infrastructure facilities for ports.

13. Referring to the above, the ld. A.R pointed out that all the above activities tantamount to creating and maintaining valuable and much needed infrastructure for the Nation. Ports greatly facilitate trade and commence and contribute significantly to the development of not only the hinterland which they serve directly, but also to the growth and development of the national economy. Advancement of an object of General Public Utility has been held to be a charitable purposes. The provisions in the Major Port Trusts Act as regards the works and services to be provided by the assessee and the manner of utilization of the funds as laid down in Chapter VIII, highlight inherent charitable nature of activities of the Port Trusts. As per the decisions in the case of Ahmedabad Rana Caste Association v. CIT Gujarat and in the case of CIT v. Rana Caste Association it was held that every object of general public utility is a charitable object according to the definition in the Indian statute. The concept of charitable purpose, according to the Indian law, is therefore, definitely very wide. It is well settled by now that an object beneficial to a section of the public is an object of general pubic utility. To serve a charitable purpose, it is not necessary that the object should be to benefit the whole of mankind or all persons in a particular country or State. It is sufficient if the Intention to benefit a section of the public, as distinguished from a specified individual, is present. According to the ld. A.R this view was affirmed by the Supreme Court to the case of CIT Gujarat III v. Anmedabad Rana Caste Association .

(iv) The extent of utilization or the income of the Port for any genuine charitable activity can only be assessed during the regular scrutiny assessment for each year separately.

24. CIT (DR) farther strongly argued that MPT was a commercial organization with the primary objective of earning profits. The activities of the Port can in no way be said to be charitable in nature. The Port Trust was catering only to the requirements of limited number of importers and exporters, as well as shippers of coastal cargoes, and the activities cannot be said to be of 'general public utility. She submitted that if such organizations were to be considered to be charitable in nature, then every commercial organization engaged in Port and shipping activities will start claiming exemption of its income. The feet that Statutory Boards/Public Sector Undertakings/Entitles created by Acts of the Parliament rendering certain specific services of Infrastructure! and development nature, social welfare promotion of sports, etc. should be considered as carrying on commercial business activities, and their Income should be classified as profits and gains of business, has been made clear by the recent amendments by which the new Section 36(1)9(ii) has been introduced. According to this Section, expenditure incurred by the Statutory Bodies shall be admissible as deduction for computation of income. The purpose is that after withdrawal of tax exemption, activities having no profit motive may be termed to be non-business in nature, and hence expenditure related thereto may not be allowed as deduction. She contended that this itself proves that even in the case of a larger purpose being satisfied, such institutions are to be considered as carrying on business activity, for which taxable income is to be computed. She stated that the primary or dominant purpose of MPT is not charitable. At best the benefit, if any, accruing to the public, is ancillary or incidental to the primary or dominant object of earning profits. She therefore argued that the income of Mormugao Port Trust cannot be said to be exempted Under Section 11 and Registration Under Section 12A should not be granted. She reiterated that the purpose of maintenance and development of Major Ports or of shipping and navigation of the country, do not by themselves make the port authorities a Trust, neither does the objectives of MPT suggest that day to day utilization of the various funds are for charitable purposes', in any case, she submitted that whether MPT was engaged in charitable activity or not can be determined only after a detailed scrutiny during the assessment proceedings.