TMI Blog1944 (11) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ₹ 5,000 each. 43 shares are held by the directors admittedly in their own right and in their individual names. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers 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. From the application made by the Commissioner for a reference it appear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 that it was argued that if the five trustees at a meeting decided that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es 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 Excess Profits Tax Act is in the directors. The question submitted to us is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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