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TMI Blog1971 (11) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, the substantive section had not been amended at all. That, in our judgment, will not make any difference because the essence of the matter is that the definition of the word "businesss" which was material was amended only prospectively and not with retrospective effect - Appeal dismissed - C.A. Nos. 1454 of 1969, & 148 of 1971, - - - Dated:- 17-11-1971 - HEGDE K.S. AND GROVER A.N. JJ. S.T. Deai, Senior Advocate (A.V. Rangam, Advocate, with him), for the appellant. K. Parasaran, T.Vadivel, R. Shanmugham and K. Jayaram, Advocates, for the respondent in C.A. No. 1454 of 1969 (Thirumagal Mills Ltd.). B. Sen, Senior Advocate (S.P. Mitra and G.S. Chatterjee, Advocates, with him). for the intervener. T.A. Ramachand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed the view that the primary requisite of "business" as defined by the Act should be a trade or commerce or adventure in the nature of trade or commerce. Presence or absence of profit was not material but the activity must be of a commercial character in the course of trade or commerce. It was found that the assessee had not been carrying on business in the fair price shop. The High Court looked into the articles of association of the assessee and found no article empowering it to carry on business in fair price shop. The assessee had opened that shop only to provide an amenity to its workmen so that com- modities may be made available to them at fair prices. According to the High Court if as a matter of fact some profit accrued that woul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es Tax (Second Amendment) Act, 1964, clause (d) of section 2 was substituted by the following clause: "'business' includes- (i) any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture, whether or not such trade, commerce, manufacture, adventure or concern is carried on with a motive to make gain or profit and whether or not any profit accrues from such trade, commerce, manufacture, adventure or concern; and (ii) any transaction in connection with, or incidental or ancillary to, such trade, commerce, manufacture, adventure or concern." Section 9 validated the levy and collection of certain taxes in the following terms: "9. Notwithstanding anything contained in any judgment, dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntended before us on behalf of the revenue that the turnover of the sales by the fair price shop and the canteen could be included in the taxable turnover according to the definition of "business" as it stood in the original Act. The contention raised is that section 2 of the Second Amendment Act, 1964, substituted the new definition of "business" with retrospective effect. This result flows, it is said, from the language of section 9 although in section 2 of that Act no such language has been used as can give retrospective operation to the amendment made. We are unable to agree that section 9 by itself would make the definition of "business" as substituted in section 2 retrospective. In State of Tamil Nadu v. M. Rayappa Gounder A.I.R. 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nicipality and Others [1971] 79 I.T.R. 136 (S.C.). Although the definition of "business" was substituted by the Second Amendment Act of 1964 it was not made retrospective by the usual words that it should be deemed to have been always substituted nor was any other language employed to show that the substantive provision, namely, the definition of "business" was being amended retrospectively. Section 9, therefore, can be of no avail to the revenue. It has been pointed out that in the other decision rendered by this court, in which similar validation provision appeared, the substantive section had not been amended at all. That, in our judgment, will not make any difference because the essence of the matter is that the definition of the word ..... X X X X Extracts X X X X X X X X Extracts X X X X
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