UNION CO LTD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This is a reference under Section 256(1) of the I.T. Act, 1961. It arises out of proceedings under Section 104 of the I.T. Act, 1961, for the assessment years 1963-64 and 1964-65, the relevant previous years ending on March 31, 1963, and March 31, 1964, respectively.

(2.) Section 107 deals with super-tax on undistributed income of certain companies. Section 108 provides, inter alia, that nothing in Section 104 shall apply to any company in which the public are substantially interested.

(3.) In order to find out what is meant by " company in which the public are substantially interested" one has to go to Section 2(18). The portions of Section 2(18) relevant for our purposes are as follows :