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PETITIONER: COMMISSIONER OF INCOME-TAX,WEST BENGAL
Vs.
RESPONDENT: MESSRS. JEEWANLAL LTD.
DATE OF JUDGMENT: 08/10/1953
BENCH: DAS, SUDHI RANJAN BENCH: DAS, SUDHI RANJAN SASTRI, M. PATANJALI (CJ) BOSE, VIVIAN HASAN, GHULAM BHAGWATI, NATWARLAL H.
CITATION: 1953 AIR 473 1954 SCR 0
ACT: Excess Profits Tax Act (XV of 1940), s.2(11)-Director con- trolled company -Definition-Directors authorised by another- Company holding majority of shares to vote in respect of the shares-- Company, whether director controlled.
HEADNOTE: Ordinarily a company will be a, "company, the directors whereof have a controlling interest therein" for the purposes of the Excess Profits Tax Act, 1940, only if the directors thereof hold, and are entered in the share register as holders of, a majority of the vote-carrying shares of the company. It is not necessary that they must have a beneficial interest in such shares, but the mere fact that one of the directors of the company has been authorised by another company which held a majority of shares in the former company, to vote on its behalf in respect of the shares held by it, will not make the former company a director controlled company. Glasgow Expanded Metal Co. Ltd. v. Commissioners of Inland Revenue (12 Tax Cas. 573), Commissioners of Inland Revenue v. B. W. Noble (12 Tax Cas. 911), Inland Revenue ...