1962 (6) TMI 44

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....ition directing the respondents from taking further proceedings against the petitioner's firm in pursuance 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 p....

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....n that there was no business done in those commodities with an intention to profit, and the transactions 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,....

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....nsactions. In similar circumstances, it has been held by this Court in Gannon Dunkerley v. State of Madras[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 ....

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....s definition, which is an inclusive one, that it does not dispense with the requirement, in order to constitute 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....