JAMES ALEXANDER AND CO LTD Vs. COMMISSIONER OF INCOME TAX
HIGH COURT OF CALCUTTA
JAMES ALEXANDER And CO. LTD.
COMMISSIONER OF INCOME TAX
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P.B.MUKHARJI J. -
(1.) THE assessee's only objection is that it is a company in which the public are substantially interested and therefore s. 23A of the IT Act cannot be applied to it.
(2.) THIS is a reference under s. 66(1) of the Indian IT Act at the instance of the applicant. M/s James Alexander & Co. Ltd., the assessee, for the decision of this Court on the following questions of law :
"(1) Whether, in the facts and circumstances of this case, the firm of Soorajmull Nagermull was not a member of the public within the meaning of s. 23 ? (2) Whether, in the facts and circumstances of this case, the group of individuals consisting of the partners of Surajmull Nagermull and the wives of the of the partners held more than seventy five per cent of the shares of the assessee-company ? (3) In the circumstances, whether the provisions of s. 23A were applicable in this cas ?"
The assessee is a public company. The assessment year under consideration is 1949-50 and the relevant accounting year is that ending on the 31st Dec., 1948. In the statement of case it is
stated that the shares of the assessee-company were freely transferable by the holders to the
other members of the public.
(3.) IT will be necessary however to indicate below the shareholders of the assessee-company in order to determine and decide the questions raised. The shareholders of the assessee-company are as
(The shares stood in the name of Radheshyam Agarwalla, a nominee of Bikaner Trading Co. Ltd. The AAC has by mistake, shown the name of the shareholders as "Orient Trading Co. Ltd." instead of "The Bikaner Trading Co. Ltd.)" Name . No. of shares held (1) D. Logan Edwards . 500 shares (2) C. L. Bajoria, Directors 1,370 shares (3) K. D. Jalan . 1,370 shares (4) M/s Soorajmull Nagermull . 3,638 shares (5) D. N. Jalan--partner of M/s Surajmull Nagermull . 1,370 shares (6) Raigarh Jute Co. Ltd. . 40,000 shares (7) Cooch-Behar Trading Co. Ltd. . 10,000 shares (8) Bikaner Trading Co. Ltd. . 8,549 shares (9) Must. Dakhi 10,000 shares (10) Mrs. Krishna Devi Jalan 5,600 shares (11) Shmt. Shanti 2,300 shares (12) Shmt. Shanti Jalan 2,300 shares (13) Shmt. Radha Jalan 2,200 shares (14) Shmt. Chanda Jalan 2,200 shares (15) Shmt. Panna Jalan 5,600 shares (16) Shmt. Chandramani Jalan 2,300 shares (17) A. E. Mitchell 200 shares (18) M. E. Maggie 1 shares ;
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