https://www.taxtmi.com/caselaws?id=276082 Directors' power under the articles of association to refuse registration of share transfers restricts free transferability because legal title does not pass until the transferee is registered. For section 23A of the Indian Income-tax Act, shares were therefore not freely transferable during the relevant previous year, notwithstanding that the power had not previously been exercised. The restriction arising from the articles was substantive rather than theoretical, and the company could not be treated as one whose shares were freely transferable for section 23A purposes. en-us Tue, 06 Feb 1962 00:00:00 +0530 Sat, 27 Oct 2018 13:00:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276082 Directors' power under the articles of association to refuse registration of share transfers restricts free transferability because legal title does not pass until the transferee is registered. For section 23A of the Indian Income-tax Act, shares were therefore not freely transferable during the relevant previous year, notwithstanding that the power had not previously been exercised. The restriction arising from the articles was substantive rather than theoretical, and the company could not be treated as one whose shares were freely transferable for section 23A purposes. Case-Laws Income Tax Tue, 06 Feb 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276082