Deb, J. - (1.) The following question is involved in this reference under Section 256(1) of the Income-tax Act, 1961 : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that M/s. Permutit Co. Ltd. of U.K. was a company within the meaning of Section 2(17) of the Income-tax Act, 1961 ?"
(2.) The assessment year involved is 1965-66. The previous year ended on December 31, 1964. The assessee is an Indian company and was incorporated on March 6, 1966, under the provisions of the Companies Act, 1956.
(3.) The facts stated and found by the Appellate Tribunal may be briefly stated as follows: M/s. Permutit Co. Ltd. was incorporated as a public limited company in 1937 under the relevant provisions of the Companies Act of England. Its shares were held by the public and were freely transferable. Its shares carrying more than 50% of the voting power were not controlled or held by five or fewer persons. It held 1,50,000 shares out of 2,50,000 shares of the assessee in the relevant accounting year. Permutit Company was not assessed to income-tax under the Indian Income-tax Act, 1922, as a company for the assessment year commencing on April 1, 1947.;