COMMISSIONER OF INCOME TAX Vs. EAST COAST COMMERCIAL CO
LAWS(CAL)-1976-4-22
HIGH COURT OF CALCUTTA
Decided on April 26,1976

COMMISSIONER OF INCOME-TAX Appellant
VERSUS
EAST COAST COMMERCIAL CO. Respondents


Referred Judgements :-

THOMAS FATTORINI (LANCASHIRE) LTD. V. IRC [REFERRED TO]
CIT V. GANGADHAR BANERJEE AND CO. (PRIVATE) LTD. [REFERRED TO]
RAGHUVANSHI MILLS LIMITED BOMBAY VS. COMMISSIONER OF INCOME TAX [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. JUBILEE MILLS LTD [REFERRED TO]
COMMISSIONER OF INCOME TAX WEST BENGAL VS. EAST COAST COMMERCIAL COMPANY LIMITED [REFERRED TO]
COMMISSIONER OF INCOME TAX BIHAR PATNA VS. SAHU JAIN LIMITED [REFERRED TO]



Cited Judgements :-

COMMISSIONER OF INCOME TAX VS. MAHADEO RAM KUMAR [LAWS(CAL)-1986-8-25] [REFERRED TO]


JUDGEMENT

Deb, J. - (1.)This reference under Section 66(1) of the Indian LT, Act, 1922, was heard previously by a Division Bench of this court. Question No, 1 was answered against the revenue, whereas questions Nos. 2 and 3 were answered in its favour. The Commissioner then preferred an appeal to the Supreme Court on question No. 1. The Supreme Court allowed the said appeal by its judgment dated October 11, 1966, which is reported in CIT v. East Coast Commercial Co. Ltd. [1967] 63 ITR 449. The Supreme Court was, however, unable to answer question No. 1 and after setting aside the order under appeal directed the Tribunal to submit a supplementary statement of the case to this court to enable us to answer question No. 1. The Tribunal has submitted a supplementary statement of the case and hence this matter is now before us.
(2.)The assessment years involved are 1950-51 and 1951-52. The assessee is a company. The question No. 1 is as follows :
" (1) Whether, on the facts and in the circumstances of the case, the Tribunal erred in law in holding that the assessee-company was one in which the public are substantially interested within the meaning of Section 23A of the Indian I.T. Act ? "

(3.)The relevant portion of the Expl. to Section 23A(1) of the Indian I.T. Act, 1922, as it stood prior to its amendment in 1955, reads as follows :
" For the purpose of this sub-section, a company shall be deemed to be a company in which the public are substantially interested if shares of the company.........carrying not less than twenty-five per cent. of the voting power have been allotted unconditionally to, or acquired unconditionally by, and are at the end of the previous year beneficially held by, the public ......and if any such shares have in the course of such previous year been the subject of dealings in any stock exchange......or are in fact freely transferable by the holders to other members of the public."

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