https://www.taxtmi.com/caselaws?id=49376 Section 23A of the Indian Income-tax Act, 1922 was meant to curb avoidance of super-tax through non-distribution of profits, but it did not apply where the company was one in which the public were substantially interested. The Explanation could be invoked only if shares, excluding preference shares carrying a fixed dividend, represented at least twenty-five per cent of the voting power and were unconditionally held by the public. On the facts found, that public holding was not established, and the revenue had also not examined whether a controlling interest otherwise brought the case within the third proviso. The section 23A order could not therefore be sustained. en-us Tue, 28 Apr 1964 00:00:00 +0530 Sat, 23 Aug 2014 11:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49376 Section 23A of the Indian Income-tax Act, 1922 was meant to curb avoidance of super-tax through non-distribution of profits, but it did not apply where the company was one in which the public were substantially interested. The Explanation could be invoked only if shares, excluding preference shares carrying a fixed dividend, represented at least twenty-five per cent of the voting power and were unconditionally held by the public. On the facts found, that public holding was not established, and the revenue had also not examined whether a controlling interest otherwise brought the case within the third proviso. The section 23A order could not therefore be sustained. Case-Laws Income Tax Tue, 28 Apr 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49376