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Shri Ramtanu Co-Operative Housing ... vs State Of Maharashtra & Ors on 5 August, 1970

In Shri Ramtanu Coop. Housing Society [Shri Ramtanu Coop. Housing Society Ltd. v. State of Maharashtra, (1970) 3 SCC 323] no doubt, this Court did not have to decide whether Maharashtra Industrial Development Corporation was entitled to tax exemption. However, it examined the provisions of the Act, and the ratio, that such industrial development corporations are not engaged in trading, is binding. Like in that case, here too, the State Acts concerned (the Gujarat Industrial Development Act, 1962 and the Karnataka Industrial Areas Development Act, 1966) tasked the boards with planning and development of industrial areas. Their personnel are appointed under the enactments and are deemed to be public servants. The State Government is empowered to acquire land, in exercise of eminent domain power, for their purposes; their audits are by the Accountant General of the State concerned, or auditors appointed by the State. They are authorised by law, to levy rates and charges, for the services they provide, on predetermined basis. In the light of these provisions, clearly, these boards and authorities perform objects of general public utility; and they are not driven by profit motive.
Supreme Court of India Cites 11 - Cited by 87 - A N Ray - Full Document

State Of Gujarat vs M/S. Raipur Manufacturing Company Ltd on 30 September, 1966

"Section 2(15) defines the term 'charitable purpose'. Therefore, while construing the term 'business' for the said section, the object and purpose of the section has to be kept in mind. We do not think that a very broad and extended definition of the term 'business' is intended for the purpose of interpreting and applying the first proviso to section 2(15) of the Act to include any transaction for a fee or money. An activity would be considered 'business' if it is undertaken with a profit motive, but in some cases this may not be determinative. Normally, the profit motive test should be satisfied but in a given case activity may be regarded as business even when profit motive cannot be established/proved. In such cases, there should be evidence and material to show that the activity has continued on sound and recognized business principles, and pursued with reasonable continuity. There should be facts and other circumstances which justify and show that the activity undertaken is in fact in the nature of business. The test as prescribed in State of Gujarat v. Raipur Manufacturing Co. Ltd. (1967) 19 STC 1 (SC) and CST v. Sai Publication Fund (2002) 258 ITR 70 (SC) ; (2002) 126 STC 288 (SC) can be applied.
Supreme Court of India Cites 12 - Cited by 157 - J C Shah - Full Document
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