Banerjee, J. - (1.) In this reference we are required to give out opinion on the following question:- "Whether in the facts and circumstances of these cases, the Income Tax Appellate Tribunal was right in holding that the directors of the respondents company had a controlling interest in it as contemplated by Section 2 (21) of the Excess Profits Tax Act."
(2.) This reference has been made at the instance of the Commissioner of Excess Profits Tax, West Bengal, and arises out of five consolidated applications made under the Excess Profits Tax Act covering the chargeable accounting periods ended 31st December, 1939, to 31st December, 1943. The point involved in them is the same.
(3.) The dispute before the Appellate Assistant Commissioner and the Income Tax Appellate Tribunal was whether the respondent company was or was not a director-controlled company within the meaning of Section 2(21) of the Excess Profits Tax Act, 1940, during the chargeable accounting periods in question. The material portion of that section is as follows:- "Statutory percentage" means - (a) in relation to a business carried on by a body corporate (other than a company the directors whereof have a controlling interest therein), eight per cent. per annum;.............. (c) in relation to a business to which sub-clause (a) does not apply, ten per cent. per annum.;