- (1.) Heard learned Counsel on both sides.
(2.) Appellant-Corporation [Assessee] was initially constituted as 'Central Text Book Committee', which was attached to the office of the Director of Public Instruction. In 1950, the name was changed to 'Assam Text Book Committee' with ten members nominated by the State Government. In the year 1968, the Government re- constituted the said Committee as 'Board of Text Book Production and Research'. The said Board was converted into Corporation in 1972 and the name was changed to 'Assam State Text Book Production and Publication Corporation Limited' vide Notification dated 26th July, 1972 [for short, "the Corporation"]. All the assets of the said Board stood transferred to the Corporation with effect from 1st July, 1972. The Corporation had paid-up share capital of Rupees one crore and the break-up of the share holding was as follows: NAME SHARES FACE VALUE 1. Governor of Assam, 9998 nos. Rs.99,98,000/- represented by the Secretary, Education Department, Govt. of Assam 2. Financial Commissioner & 1 nos. Rs. 1,000/- Secretary, Finance Department, Govt. of Assam 3. The Chairman, Board of 1 nos. Rs. 1,000/- Secondary Education, Assam
(3.) As can be seen from the share holding pattern, quoted above, almost the entire share capital of the Corporation was owned by the Government of Assam and, consequently, the said Corporation became a Government Company, as defined under Section 617 of the Companies Act, 1956. In other words, the control of the Government ceased to exist after 26th July, 1972, and the erstwhile Board came to be corporatorised under the Companies Act, 1956. The main object of the Government Company was to do research, printing and publishing of text books for school students as per the norms prescribed and approved by the Education Department, State of Assam.;