https://www.taxtmi.com/caselaws?id=7582 The statutory test of a company in which the public are substantially interested was applied strictly: where shares carrying the required voting power were concentrated in one controlling shareholder company, they were not treated as publicly held, and exemption under the third proviso to Section 23A(1) of the Indian Income-tax Act, 1922 was unavailable. On the smallness of profits point, the Court stated that the inquiry whether a larger dividend would be unreasonable does not depend on prior distribution of the whole commercial profits; that requirement is not found in the statute and cannot be read in by construction. The exemption issue was decided against the assessee, but the legal threshold issue on smallness of profits was decided in its favour. en-us Fri, 13 Jun 1969 00:00:00 +0530 Mon, 02 Mar 2009 13:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7582 The statutory test of a company in which the public are substantially interested was applied strictly: where shares carrying the required voting power were concentrated in one controlling shareholder company, they were not treated as publicly held, and exemption under the third proviso to Section 23A(1) of the Indian Income-tax Act, 1922 was unavailable. On the smallness of profits point, the Court stated that the inquiry whether a larger dividend would be unreasonable does not depend on prior distribution of the whole commercial profits; that requirement is not found in the statute and cannot be read in by construction. The exemption issue was decided against the assessee, but the legal threshold issue on smallness of profits was decided in its favour. Case-Laws Income Tax Fri, 13 Jun 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7582