https://www.taxtmi.com/caselaws?id=277022 Section 23A of the Income-tax Act, 1922 and its third proviso were construed together to identify the class of companies treated as companies in which the public were substantially interested. The explanation to the proviso excluded from "public" a company to which the sub-section applied, so the enquiry focused on the nature of the company rather than on whether the power under sub-section (1) had already been attracted. On that reading, Mysore Merchants Ltd. could not be counted as part of the public, and Clause 14 of the Part B States (Taxation Concessions) Order, 1950 did not change that position because it assumed the application of section 23A and only granted limited exemption. The view that directors were members of the public was rejected by binding precedent. en-us Thu, 08 Mar 1956 00:00:00 +0530 Thu, 22 Nov 2018 12:19:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=277022 Section 23A of the Income-tax Act, 1922 and its third proviso were construed together to identify the class of companies treated as companies in which the public were substantially interested. The explanation to the proviso excluded from "public" a company to which the sub-section applied, so the enquiry focused on the nature of the company rather than on whether the power under sub-section (1) had already been attracted. On that reading, Mysore Merchants Ltd. could not be counted as part of the public, and Clause 14 of the Part B States (Taxation Concessions) Order, 1950 did not change that position because it assumed the application of section 23A and only granted limited exemption. The view that directors were members of the public was rejected by binding precedent. Case-Laws Income Tax Thu, 08 Mar 1956 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=277022