Appeals from the judgment and order dated February 10, 1965 and July 17, 1967 of the Calcutta High Court in Income tax Reference Nos.
274 of 1961 and 114 of 1963 respectively.
Pal, R. K. Choudhry, N. R. Khaitan, Krishna Sen and B. P. Maheshwari, for the appellant in both the appeals .
Sen, R. N. Sachthey and B. D. Sharma, for the respondent in both the appeals .
The appeal relating to the assessment year 1952 53 was dismissed but with regard to the subsequent year it was alqowed.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
The Judgment of the Court was delivered by Grover, J. These appeals by certificate from a judgment of the Calcutta High Court arise out of Income Tax References in which the main point involved was whether the assessee companypany companyld be regarded as one in which the public are substantially interested within the meaning of the Explanation in s. 23A of the Indian Income Tax Act,1922, hereinafter called the Act.
3 7 0 A similar question was referred in the case relating to the assessment year 1954 55.
Article 37 of its Articles of Association provided as follows The Directors may at any time in their absolute and uncontrolled discretion and without assigning any reason decline to register any proposed transfer of shares.
The appeals relate to the assessment years 1952 53 and 1954 The assessee is a public companypany incorporated under the Indian Companies Act, 1913.
The assessee appealed to, the Appellate Assistant Commissioner.
Thereupon the Tribunal was moved by the Commissioner of Income tax for stating the case and referring the following question of law which was referred by it to the High Court in the case relating to the assessment year 1952 53 Whether on a true interpretation of Article 37 of the Articles of Association, the assessee Company can be regarded as one in which the public are substantially interested within the meaning of the third proviso to section 23A 1 .
1837 and 1838 of 1968.
The High Court following a judgment of the same companyrt in Commissioner of Income tax, West Bengal v. Tona Jute Co. Ltd., answered the questions referred against the assessee and in favour of the Revenue.
Accordingly he applied the provisions of that section.
