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TMI Blog1977 (1) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... year ending September 30, 1954, without charging for the same. The assessee was not a director of the said company. He, however, was the beneficial owner of 1,800 shares out of the total of 3,000 equity shares of the said company during the previous year. Similarly, Allen Berry and Co. Pvt. Ltd. had spent a sum of Rs. 4,406 after the personal necessities of the assessee, without charging for the same. The Income-tax Officer treated the total benefit of Rs. 57,804 received by the assessee from these two companies as his " income " under section 2(6C)(iii) of the Indian Income-tax Act, 1922, which was introduced by the Finance Act, 1955, with effect from April 1, 1955, and charged it to tax along with some other items of income. The asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case and referred the following question under section 66(1) of the Indian Income-tax Act, 1922, to the High Court : " Whether, on the facts and in the circumstances of the case, the sum of Rs. 53,398 spent by Bharat Union Agencies Pvt. Ltd. after the personal necessities of the assessee is income within the meaning of section 2(6C)(iii) of the Indian Income-tax Act, 1922 ? " The High Court answered this question against the assessee. Hence, this appeal. At the outset, Shri Bishamber Lal, appearing for the appellant, tried to contend that the item of Rs. 53,398 received by the assessee from Bharat Union Agencies Pvt. Ltd. was not a " benefit or perquisite " within the contemplation of section 2(6C)(iii) of the 1922 Act, because, firs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anagement of its business and not he who holds no such position or office but is in remote control of the company and its affairs merely on account of being in ownership of a certain number of shares, carrying more than 20 per cent. or even the majority of the voting power. In support of this restricted construction of the term " concerned ", counsel referred to a decision of the Madras High Court in Arya Bhavan, Madras v. M. S. Narayana Rao AIR 1960 Mad 143, wherein Rajamannar C.J. held that the word " concerned " as used in the context of " workman " in section 22 of the Industrial Disputes (Appellate Tribunal) Act, 1950, connotes a more intimate and direct relation to the matter than the word " interest " and, therefore, this term should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ression, " that is to say ", with the co-existence of two elements, namely, (i) concern in the management of the business of the company, and (ii) beneficial ownership of shares (not being shares entitled to a fixed rate of dividend) carrying not less than twenty per cent. of the voting power. There is no dispute before us that the assessee had obtained the benefit of Rs. 53,398 from Bharat Union Agencies Pvt. Ltd. It is further admitted that he holds 1,800 shares out of the total of 3,000 equity shares in this company carrying a voting power of 60 per cent. Thus, the existence of the second element is more than satisfied. Controversy pivots around the first element only. The arguments which have been advanced before us on behalf of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seen and felt ; it is sufficient if it is felt, without being seen. " In our opinion, the above is a correct exposition of the law on the point. The word " concern " is not a term of art, having a precise, fixed meaning. It has several nuances, and is used to convey diverse shades of meaning over a wide spectrum. It may mean " to have a relation to, or bearing on, be of interest or importance or " to have an anxiety, worry ". " Concerned " as an adjective may mean " interested ", " involved ". In one context, it may mean one thing, and in a different context another. The decisions as to the meaning of this word used in a different context in another statute, are scarcely of much value in construing it in the setting of the provision with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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