State of Punjab v. Bajaj Electricals Ltd.

70 ITR 730Supreme Court of India1968#2745 most cited

What is State of Punjab v. Bajaj Electricals Ltd. authority for?

The essential condition for carrying on business, trade, or commerce is the making of a profit. Business is defined as repeated activity in the nature of trade, commerce, or service with a profit motive, distinguishing it from liberal arts, professions, or agriculture.

43

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2014 to 2023.

Also referred to as

State of Punjab v. Bajaj Electricals Ltd. · business definition · trade definition · commerce definition · profit motive · repeated activity · mercantile activity · section 4(3) · section 205 · section 36(1)(v) · section 10(23c)(iv) · section 2(15) · section 40a(3)

Also reported as

2 SCR 536

Issues it is cited on

section 4(3)section 205section 36(1)(v)section 10(23c)(iv)advancement of general public utilitysection 52proviso to section 2(15)mliput to usesection 10(23c)section 2(15)section 40a(3)

Judgments citing State of Punjab v. Bajaj Electricals Ltd.

Astt. Commissioner of Income Tax (Exemption), Lucknow vs. M/S U.P Awas Evam Vikas Parishad, Lucknow

In the result, all the grounds taken in the appeals and ground 1 of additional grounds of the Revenue stand dismissed and additional ground

ITA 24/LKW/2017[2010-11]Status: DisposedITAT Lucknow08 Jun 2022AY 2010-11

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 12ASection 143(3)Section 15Section 2(15)

…meaning it is repeated activity in the nature of carried business on with a profit motive, the activity being manual or mercantile as distinguished from the liberal arts or learned professions or agriculture [State of Punjab vs. Bajaj Electricals Ltd., (1968) 70 ITR 730, 732 (SC)]. If a person buys goods with a view to selling them at profit, it is an ordinary case of 'trade'. If the transactions are on a "large scale, it is called 'commerce, [Gannon Dunkerley & Co. vs. State of Madras, (1954) 5 STC 216, 244 (Mad)], and it is the continuous repetition of such transactions which will constitute a "business"." From…

Astt. Commissioner of Income Tax (Exemption), Lucknow vs. M/S U.P Awas Evam Vikas Parishad, Lucknow

In the result, all the grounds taken in the appeals and ground 1 of additional grounds of the Revenue stand dismissed and additional ground

ITA 23/LKW/2017[2009-10]Status: DisposedITAT Lucknow08 Jun 2022AY 2009-10

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 12ASection 143(3)Section 15Section 2(15)

…meaning it is repeated activity in the nature of carried business on with a profit motive, the activity being manual or mercantile as distinguished from the liberal arts or learned professions or agriculture [State of Punjab vs. Bajaj Electricals Ltd., (1968) 70 ITR 730, 732 (SC)]. If a person buys goods with a view to selling them at profit, it is an ordinary case of 'trade'. If the transactions are on a "large scale, it is called 'commerce, [Gannon Dunkerley & Co. vs. State of Madras, (1954) 5 STC 216, 244 (Mad)], and it is the continuous repetition of such transactions which will constitute a "business"." From…

Astt. Commisioner of Income Tax (Exemption), Lucknow vs. M/S U.P Awas Evam Vikas Parishad, Lucknow

In the result, all the grounds taken in the appeals and ground 1 of additional grounds of the Revenue stand dismissed and additional ground

ITA 211/LKW/2017[2014-15]Status: DisposedITAT Lucknow08 Jun 2022AY 2014-15

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 12ASection 143(3)Section 15Section 2(15)

…meaning it is repeated activity in the nature of carried business on with a profit motive, the activity being manual or mercantile as distinguished from the liberal arts or learned professions or agriculture [State of Punjab vs. Bajaj Electricals Ltd., (1968) 70 ITR 730, 732 (SC)]. If a person buys goods with a view to selling them at profit, it is an ordinary case of 'trade'. If the transactions are on a "large scale, it is called 'commerce, [Gannon Dunkerley & Co. vs. State of Madras, (1954) 5 STC 216, 244 (Mad)], and it is the continuous repetition of such transactions which will constitute a "business"." From…

Astt. Commisioner of Income Tax (Exemption), Lucknow vs. M/S U.P Awas Evam Vikas Parishad, Lucknow

In the result, all the grounds taken in the appeals and ground 1 of additional grounds of the Revenue stand dismissed and additional ground

ITA 210/LKW/2017[2013-14]Status: DisposedITAT Lucknow08 Jun 2022AY 2013-14

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 12ASection 143(3)Section 15Section 2(15)

…meaning it is repeated activity in the nature of carried business on with a profit motive, the activity being manual or mercantile as distinguished from the liberal arts or learned professions or agriculture [State of Punjab vs. Bajaj Electricals Ltd., (1968) 70 ITR 730, 732 (SC)]. If a person buys goods with a view to selling them at profit, it is an ordinary case of 'trade'. If the transactions are on a "large scale, it is called 'commerce, [Gannon Dunkerley & Co. vs. State of Madras, (1954) 5 STC 216, 244 (Mad)], and it is the continuous repetition of such transactions which will constitute a "business"." From…

Astt. Commisioner of Income Tax (Exemption), Lucknow vs. M/S U.P Awas Evam Vikas Parishad, Lucknow

In the result, all the grounds taken in the appeals and ground 1 of additional grounds of the Revenue stand dismissed and additional ground

ITA 165/LKW/2017[2012-13]Status: DisposedITAT Lucknow08 Jun 2022AY 2012-13

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 12ASection 143(3)Section 15Section 2(15)

…meaning it is repeated activity in the nature of carried business on with a profit motive, the activity being manual or mercantile as distinguished from the liberal arts or learned professions or agriculture [State of Punjab vs. Bajaj Electricals Ltd., (1968) 70 ITR 730, 732 (SC)]. If a person buys goods with a view to selling them at profit, it is an ordinary case of 'trade'. If the transactions are on a "large scale, it is called 'commerce, [Gannon Dunkerley & Co. vs. State of Madras, (1954) 5 STC 216, 244 (Mad)], and it is the continuous repetition of such transactions which will constitute a "business"." From…

Astt. Commisioner of Income Tax (Exemption), Lucknow vs. M/S U.P Awas Evam Vikas Parishad, Lucknow

In the result, all the grounds taken in the appeals and ground 1 of additional grounds of the Revenue stand dismissed and additional ground

ITA 164/LKW/2017[2011-12]Status: DisposedITAT Lucknow08 Jun 2022AY 2011-12

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 12ASection 143(3)Section 15Section 2(15)

…meaning it is repeated activity in the nature of carried business on with a profit motive, the activity being manual or mercantile as distinguished from the liberal arts or learned professions or agriculture [State of Punjab vs. Bajaj Electricals Ltd., (1968) 70 ITR 730, 732 (SC)]. If a person buys goods with a view to selling them at profit, it is an ordinary case of 'trade'. If the transactions are on a "large scale, it is called 'commerce, [Gannon Dunkerley & Co. vs. State of Madras, (1954) 5 STC 216, 244 (Mad)], and it is the continuous repetition of such transactions which will constitute a "business"." From…

Astt. Commissioner of Income Tax (Exemption), Lucknow vs. M/S U.P Awas Evam Vikas Parishad, Lucknow

In the result, all the grounds taken in the appeals and ground 1 of additional grounds of the Revenue stand dismissed and additional ground

ITA 631/LKW/2016[2010-11]Status: DisposedITAT Lucknow08 Jun 2022AY 2010-11

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 12ASection 143(3)Section 15Section 2(15)

…meaning it is repeated activity in the nature of carried business on with a profit motive, the activity being manual or mercantile as distinguished from the liberal arts or learned professions or agriculture [State of Punjab vs. Bajaj Electricals Ltd., (1968) 70 ITR 730, 732 (SC)]. If a person buys goods with a view to selling them at profit, it is an ordinary case of 'trade'. If the transactions are on a "large scale, it is called 'commerce, [Gannon Dunkerley & Co. vs. State of Madras, (1954) 5 STC 216, 244 (Mad)], and it is the continuous repetition of such transactions which will constitute a "business"." From…

Astt. Commissioner of Income Tax (Exemption), Lucknow vs. M/S U.P Awas Evam Vikas Parishad, Lucknow

In the result, all the grounds taken in the appeals and ground 1 of additional grounds of the Revenue stand dismissed and additional ground

ITA 630/LKW/2016[2009-10]Status: DisposedITAT Lucknow08 Jun 2022AY 2009-10

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 12ASection 143(3)Section 15Section 2(15)

…meaning it is repeated activity in the nature of carried business on with a profit motive, the activity being manual or mercantile as distinguished from the liberal arts or learned professions or agriculture [State of Punjab vs. Bajaj Electricals Ltd., (1968) 70 ITR 730, 732 (SC)]. If a person buys goods with a view to selling them at profit, it is an ordinary case of 'trade'. If the transactions are on a "large scale, it is called 'commerce, [Gannon Dunkerley & Co. vs. State of Madras, (1954) 5 STC 216, 244 (Mad)], and it is the continuous repetition of such transactions which will constitute a "business"." From…

Lucknow Development Authority, Lucknow vs. DCIT (E), Lucknow

In the result, all the appeals of the assessee are partly allowed

ITA 666/LKW/2019[2012-13]Status: DisposedITAT Lucknow05 Apr 2022AY 2012-13

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 12Section 13(1)(c)Section 13(3)Section 143(3)Section 147Section 154Section 2(15)Section 40

…y meaning it is repeated activity in the nature of carried business on with a profit motive, the activity being manual or mercantile as distinguished from the liberal arts or learned professions or agriculture [State of Punjab v. Bajaj Electricals Ltd.,(1968) 70 ITR 730, 732 (Sc)]. If a person buys goods with a view to selling them at profit, it is an ordinary case of 'trade'. If the transactions are on a large scale, it is called 'commerce, [GannonDunkerley& Co. v. State of Madras, (1954) 5 STC 216,244 (Mad)],and it is the continuous repetition of such transactions which will constitute a "business"." 9.8 In th…

Lucknow Development Authority, Lucknow vs. DCIT (E), Lucknow

In the result, all the appeals of the assessee are partly allowed

ITA 665/LKW/2019[2012-13]Status: DisposedITAT Lucknow05 Apr 2022AY 2012-13

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 12Section 13(1)(c)Section 13(3)Section 143(3)Section 147Section 154Section 2(15)Section 40

…y meaning it is repeated activity in the nature of carried business on with a profit motive, the activity being manual or mercantile as distinguished from the liberal arts or learned professions or agriculture [State of Punjab v. Bajaj Electricals Ltd.,(1968) 70 ITR 730, 732 (Sc)]. If a person buys goods with a view to selling them at profit, it is an ordinary case of 'trade'. If the transactions are on a large scale, it is called 'commerce, [GannonDunkerley& Co. v. State of Madras, (1954) 5 STC 216,244 (Mad)],and it is the continuous repetition of such transactions which will constitute a "business"." 9.8 In th…

Lucknow Development Authority, Lucknow vs. DCIT (E), Lucknow

In the result, all the appeals of the assessee are partly allowed

ITA 656/LKW/2019[2012-13]Status: DisposedITAT Lucknow05 Apr 2022AY 2012-13

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 12Section 13(1)(c)Section 13(3)Section 143(3)Section 147Section 154Section 2(15)Section 40

…y meaning it is repeated activity in the nature of carried business on with a profit motive, the activity being manual or mercantile as distinguished from the liberal arts or learned professions or agriculture [State of Punjab v. Bajaj Electricals Ltd.,(1968) 70 ITR 730, 732 (Sc)]. If a person buys goods with a view to selling them at profit, it is an ordinary case of 'trade'. If the transactions are on a large scale, it is called 'commerce, [GannonDunkerley& Co. v. State of Madras, (1954) 5 STC 216,244 (Mad)],and it is the continuous repetition of such transactions which will constitute a "business"." 9.8 In th…

Lucknow Development Authority, Lucknow vs. DCIT (E), Lucknow

In the result, all the appeals are partly allowed

ITA 439/LKW/2019[2016-17]Status: DisposedITAT Lucknow10 Mar 2022AY 2016-17

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 11rSection 12Section 12ASection 13(1)(c)Section 13(3)Section 143(3)Section 147Section 148Section 2(15)

…y meaning it is repeated activity in the nature of carried business on with a profit motive, the activity being manual or mercantile as distinguished from the liberal arts or learned professions or agriculture [State of Punjab v. Bajaj Electricals Ltd.,(1968) 70 ITR 730, 732 (Sc)]. If a person buys goods with a view to selling them at profit, it is an ordinary case of 'trade'. If the transactions are on a large scale, it is called 'commerce, [GannonDunkerley& Co. v. State of Madras, (1954) 5 STC 216,244 (Mad)],and it is the continuous repetition of such transactions which will constitute a "business"." 9.8 In th…

Lucknow Development Authority, Lucknow vs. ACIT (E), Lucknow

In the result, all the appeals are partly allowed

ITA 186/LKW/2019[2013-14]Status: DisposedITAT Lucknow10 Mar 2022AY 2013-14

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 11rSection 12Section 12ASection 13(1)(c)Section 13(3)Section 143(3)Section 147Section 148Section 2(15)

…y meaning it is repeated activity in the nature of carried business on with a profit motive, the activity being manual or mercantile as distinguished from the liberal arts or learned professions or agriculture [State of Punjab v. Bajaj Electricals Ltd.,(1968) 70 ITR 730, 732 (Sc)]. If a person buys goods with a view to selling them at profit, it is an ordinary case of 'trade'. If the transactions are on a large scale, it is called 'commerce, [GannonDunkerley& Co. v. State of Madras, (1954) 5 STC 216,244 (Mad)],and it is the continuous repetition of such transactions which will constitute a "business"." 9.8 In th…

Lucknow Development Authority, Lucknow vs. ACIT (E), Lucknow

In the result, all the appeals are partly allowed

ITA 185/LKW/2019[2013-14]Status: DisposedITAT Lucknow10 Mar 2022AY 2013-14

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 11rSection 12Section 12ASection 13(1)(c)Section 13(3)Section 143(3)Section 147Section 148Section 2(15)

…y meaning it is repeated activity in the nature of carried business on with a profit motive, the activity being manual or mercantile as distinguished from the liberal arts or learned professions or agriculture [State of Punjab v. Bajaj Electricals Ltd.,(1968) 70 ITR 730, 732 (Sc)]. If a person buys goods with a view to selling them at profit, it is an ordinary case of 'trade'. If the transactions are on a large scale, it is called 'commerce, [GannonDunkerley& Co. v. State of Madras, (1954) 5 STC 216,244 (Mad)],and it is the continuous repetition of such transactions which will constitute a "business"." 9.8 In th…

Lucknow Evelopment Authority, Lucknow vs. I.T.O., Lucknow

In the result, all the appeals are partly allowed

ITA 164/LKW/2019[2015-16]Status: DisposedITAT Lucknow10 Mar 2022AY 2015-16

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 11rSection 12Section 12ASection 13(1)(c)Section 13(3)Section 143(3)Section 147Section 148Section 2(15)

…y meaning it is repeated activity in the nature of carried business on with a profit motive, the activity being manual or mercantile as distinguished from the liberal arts or learned professions or agriculture [State of Punjab v. Bajaj Electricals Ltd.,(1968) 70 ITR 730, 732 (Sc)]. If a person buys goods with a view to selling them at profit, it is an ordinary case of 'trade'. If the transactions are on a large scale, it is called 'commerce, [GannonDunkerley& Co. v. State of Madras, (1954) 5 STC 216,244 (Mad)],and it is the continuous repetition of such transactions which will constitute a "business"." 9.8 In th…

Lucknow Development Authority, Lucknow vs. Assistant Commissioner of Income Tax (Exemption), Lucknow

In the result, all the appeals are partly allowed

ITA 163/LKW/2019[2014-15]Status: DisposedITAT Lucknow10 Mar 2022AY 2014-15

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 11rSection 12Section 12ASection 13(1)(c)Section 13(3)Section 143(3)Section 147Section 148Section 2(15)

…y meaning it is repeated activity in the nature of carried business on with a profit motive, the activity being manual or mercantile as distinguished from the liberal arts or learned professions or agriculture [State of Punjab v. Bajaj Electricals Ltd.,(1968) 70 ITR 730, 732 (Sc)]. If a person buys goods with a view to selling them at profit, it is an ordinary case of 'trade'. If the transactions are on a large scale, it is called 'commerce, [GannonDunkerley& Co. v. State of Madras, (1954) 5 STC 216,244 (Mad)],and it is the continuous repetition of such transactions which will constitute a "business"." 9.8 In th…

DCIT (E), New Delhi vs. Ernet India, New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 1355/DEL/2017[2012-13]Status: DisposedITAT Delhi26 Aug 2020AY 2012-13

Bench: Shri Amit Shukla & Shri B.R.R. Kumar

For Appellant: Shri Rohit Jain, AdvFor Respondent: Ms. Nidhi Srivastava
Section 11Section 11(1)Section 12ASection 143(3)Section 2(15)

…ons. and, lastly, the business activity usually involves a twin activity. There is usually an element of reciprocity involved in a business transaction.' 17. In the said case, reliance and reference was made to State of Punjab v. Bajaj Electricals Ltd. [1968] 70 ITR 730 (SC) ; [1968] 2 SCR 536, Khoday Distilleries Ltd. v. State of Karnataka [1995] 1 SCC 574, Bharat 29 I.T.A. No.2235/DEL/2019 Development P. Ltd. v. CIT [1982] 133 ITR 470 (Delhi), Barendra Prasad Ray v. ITO [1981] 129 ITR 295 (SC), State of Andhra Pradesh v. H. Abdul Bakshi and Bros. 15 STC 664 (SC), State of Gujarat v. Raipur Manufacturing Co. L…

Maharashtra Industrial Development Corporation, Mumbai vs. Assistant Commissioner Income Tax (Exemptions)-2(1), Mumbai

In the result, all the appeals are partly allowed for statistical purposes

ITA 4326/MUM/2017[2007-08]Status: DisposedITAT Mumbai31 Oct 2018AY 2007-08

Bench: Shri Saktijit Dey, Jm & Shri N. K. Pradhan, Am आमकय अऩीर सं./I.T.A. Nos.4326/Mum/2017, 4327/Mum/2017, 4329/Mum/2017, 4331/Mum/2017, 4332/Mum/2017, 4475/Mum/2017 & 4476/Mum/2017 (नििाारण वषा / Assessment Years: 2007–08, 2008–09, 2009–10, 2010–11,2012–13,2013–14 &, 2014–15) Maharashtra Industrial Development Assistant Commissioner Of Income Corporation Tax (Exemptions) 2(1) Udyog Sarathi, Piramal Chambers, बिाम/ Mahakali Caves Road, Lalbaug, Vs. Andheri (East) Mumbai – 400012 Mumbai – 400093 स्थामी रेखा सं./जीआइआय सं ./Pan/Gir No. Aaacm3560C (अऩीराथी /Appellant) (प्रत्मथी / Respondent) : अऩीराथी की ओय से / Appellant By : Shri V. Sridharan & S. Sriram प्रत्मथी की ओय से/Respondent By : Shri Sanjay Singh (Cit–Dr)

For Appellant: Shri V. Sridharan & S. SriramFor Respondent: Shri Sanjay Singh (CIT–DR)
Section 11Section 12ASection 2(15)

…ons. And, lastly, the business activity usually involves a twin activity. There is usually an element of reciprocity involved in a business transaction.' In the said case reliance and reference was made to State of 17. Punjab V/s Bajaj Electricals Ltd. [1968] 2 SCR 536, Khoday Distilleries Ltd. V/s State of Karnataka [1995] 1 SCC 574, Bharat Development (P) Ltd. V/s CIT[1982] 133 ITR 470198014 Taxman 58 (Delhi), Barendra Prasad Ray V/s ITO [1981] 129 ITR 295/6 Taxman 19 (SC), State of Andhra Pradesh V/s H. Abdul Bakhi & Bros [1964] 15 STC 664 (SC), State of Gujarat V/s RaiourMfg. Co. [1967] 19 STC 1(SC), Director…

ADIT(E), New Delhi vs. M/S. Ernet India, New Delhi

In the result, both the appeals of the revenue are dismissed

ITA 2874/DEL/2014[2010-11]Status: DisposedITAT Delhi27 Dec 2017AY 2010-11

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi

For Appellant: Shri Rohit Jain, AdvFor Respondent: Ms. Rachna Singh, CIT DR
Section 11Section 12ASection 143(3)Section 2(15)

…ons. and, lastly, the business activity usually involves a twin activity. There is usually an element of reciprocity involved in a business transaction.' 17. In the said case, reliance and reference was made to State of Punjab v. Bajaj Electricals Ltd. [1968] 70 ITR 730 (SC) ; [1968] 2 SCR 536, Khoday Distilleries Ltd. v. State of Karnataka [1995] 1 SCC 574, Bharat Development P. Ltd. v. CIT [1982] 133 ITR 470 (Delhi), Barendra Prasad Ray v. ITO [1981] 129 ITR 295 (SC), State of Andhra Pradesh v. H. Abdul Bakshi and Bros. 15 STC 664 (SC), State of Gujarat v. Raipur Manufacturing Co. Ltd. 19 STC 1 (SC), Director o…

ADIT(E), New Delhi vs. M/S. Ernet India, New Delhi

In the result, both the appeals of the revenue are dismissed

ITA 2873/DEL/2014[2009-10]Status: DisposedITAT Delhi27 Dec 2017AY 2009-10

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi

For Appellant: Shri Rohit Jain, AdvFor Respondent: Ms. Rachna Singh, CIT DR
Section 11Section 12ASection 143(3)Section 2(15)

…ons. and, lastly, the business activity usually involves a twin activity. There is usually an element of reciprocity involved in a business transaction.' 17. In the said case, reliance and reference was made to State of Punjab v. Bajaj Electricals Ltd. [1968] 70 ITR 730 (SC) ; [1968] 2 SCR 536, Khoday Distilleries Ltd. v. State of Karnataka [1995] 1 SCC 574, Bharat Development P. Ltd. v. CIT [1982] 133 ITR 470 (Delhi), Barendra Prasad Ray v. ITO [1981] 129 ITR 295 (SC), State of Andhra Pradesh v. H. Abdul Bakshi and Bros. 15 STC 664 (SC), State of Gujarat v. Raipur Manufacturing Co. Ltd. 19 STC 1 (SC), Director o…