https://www.taxtmi.com/caselaws?id=6264 A clause empowering directors to refuse registration of a proposed share transfer did not, by itself, destroy the free transferability required under the Explanation to section 23A of the Indian Income-tax Act, 1922. The statutory test focused on whether shares were in fact freely transferable to members of the public, and a reasonable, fiduciary control exercised in the company's interests was not treated as an absolute or arbitrary restraint. In the absence of abuse of that power or other actual restrictions in the articles, the company remained one in which the public were substantially interested, and the issue was answered in favour of the assessee. en-us Tue, 24 Aug 1971 00:00:00 +0530 Wed, 03 Dec 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6264 A clause empowering directors to refuse registration of a proposed share transfer did not, by itself, destroy the free transferability required under the Explanation to section 23A of the Indian Income-tax Act, 1922. The statutory test focused on whether shares were in fact freely transferable to members of the public, and a reasonable, fiduciary control exercised in the company's interests was not treated as an absolute or arbitrary restraint. In the absence of abuse of that power or other actual restrictions in the articles, the company remained one in which the public were substantially interested, and the issue was answered in favour of the assessee. Case-Laws Income Tax Tue, 24 Aug 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6264