1944 (11) TMI 15

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....J. This reference deals with two applications made by the Commissioner of Income-tax in respect of the assessment of the assessees for two accounting periods, viz., 1st September 1939 to 31st December 1939 and the calendar year 1940. The relevant facts are these: The assessee company is a joint stock company with a share capital divided into 100 shares of Rs. 5,000 each. 43 shares are held by t....

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....Before the Tribunal the parties referred Co.B.W. Noble Ltd. v. Commissioners of Inland Revenue [1925] 12 Tax Cas 911, and British American Tobacco Co. v. Inland Revenue Commissioners [1942] 10 ITR Suppl. 67. This reference relates to the decision of the Court. The Tribunal rejected the contention of the Commissioner and held that it was not necessary that the interest should be beneficial interest....

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....s sufficient to bring the case within the meaning of that sub-section. The decision of the Court of Appeal was subsequently affirmed by the House of Lords: see '[1946] 14 ITR Suppl. 7-Ed. That sets at rest the first part of the argument of the Commissioner. It was next contended that when there are more than one trustee the management has to be according to the vote of the majority. From th....

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.... to the sole discretion of Nanji to vote as he directed. Under the articles of association of the company it is also provided that if Nanji was present at a meeting, as between the company and the shareholders, he had a right to vote as he pleased. Under the circumstances there is no doubt that in the case of the respondents the controlling interest within the meaning of Section 2(21)(a) of the Ex....