Mysore Merchants Ltd. 11,880 shares.
Others 4,320 shares.
N. Kripal and D. Gupta, for the respondent.
Appeal from the judgment and order dated March 8, 1956, of the Bombay High Court in Income tax Reference No.
A. Palkhivala, S. N. Andley, Rameshwar Nath, B. Dadachanji and P. L. Vohra, for the appellant.
380 of 1957.
The Managing Agency Firm 2,300 shares.
The Judgment of the Court was delivered by HIDAYATULLAH, J. This appeal, on a certificate by the High Court, has been filed by Shree Changdeo Sugar Mills, Ltd., to which s. 23A of the Income tax Act prior to its amendment by the Finance Act, 1955 was applied in respect of the assessment year, 1948 49.
of the voting power.
December 7.
The issued, subscribed and paid up capital of the assessee Company companysisted of 60,000 shares, which were distributed as follows 1 11 Directors of the Company 41,500 shares.
CIVIL APPELLATE JURISDICTION Civil Appeal c, No.
The question which was referred to the High Court was whether at the relevant time the assessee Company companyld be deemed to be a Company, in which the public were substantially interested.
4 of 1956.
During the assessment year, the Company had number distributed dividends to the extent of 60 per cent.
The Company appealed to the Appellate Assistant Commissioner, who dismissed the appeal.
The Tribunal, however, referred the above question which, as already stated, was answered in the negative by the High Court.
of its profits, and an order under s. 23A 1 of the Indian Income tax Act was passed by the Income tax Officer.
This question was answered in the negative by the High Court.
It next appealed to the Tribunal, but was unsuccessful.
60,000 shares.
We have remanded the said appeal, after setting out the companyrect test to apply.
