COMMISSIONER OF INCOME TAX Vs. INDIA SCHERING LTD

JUDGEMENT

(1.) THE question referred to us for our consideration by the Tribunal is as under :

(2.) 88.6 per cent of the equity shares of the assessee-company were beneficially held by Aspre- Nicholas Ltd. of United Kingdom. His Majesty's Inspector of Taxes, London, certified that the said U.K. Company was regarded as a company in which the public were substantially interested within the meaning of ss. 245 to 264 of the United Kingdom IT Act, 1952. By its order dt. 12th March, 1963, the Central Government of Revenue granted to Aspre Ltd. the status of a company for the purposes of the Indian IT Act, and sometime in 1956, Aspre Ltd. changed its name to Aspre- Nicholas Ltd. The only question which was permitted to be canvassed before the Tribunal was whether the holding company that is Aspre-Nicholas Ltd. could be treated as a member of the public. The Tribunal held in favour of the assessee and aggrieved by its interpretation put on s. 2 (18)(b)(i) the CIT has preferred the reference.