COMMISSIONER OF INCOME TAX Vs. MADHUSUDAN BROTHERS LIMITED

JUDGEMENT

(1.) THESE two references involving a common issue are disposed of together for the sake of convenience.

(2.) THE assessment years involved are 1968 69 to 1971 72 and 1975 76.

(3.) THE learned counsel for the assessee, at the outset, stated that the issue involved in these references is to be considered in two groups, i.e., one pertaining to the asst. yrs. 1968 69 and 1969 70 and the other pertaining to the asst. yrs. 1970 71, 1971 72 and 1975 76. Inviting our attention to the relevant provisions of the Act, viz., S. 2(18) of the IT Act, 1961 (the Act) as it stood in each of years under reference, he pointed out that for the asst. yrs. 1968 69 and 1969 70 the answer to the question raised has to be given in favour of the Revenue in view of the decision of this Court in the case of CIT vs. Indian Hotels Co. Ltd. (1982) 30 CTR (Bom) 12 : (1983) 141 ITR 343 (Bom). It may be mentioned that in the said reported case this Court had interpreted the word 'public' appearing in S. 2(18)(i)(d) to mean that the charitable trust, both public or private, cannot be treated as 'public' for determining whether a company is a company in which the public are substantially interested or not. However, as regards the other years under reference, he invited our attention to the changes made w.e.f. 1st April, 1970 more particularly in sub cl. (b) of sub s.(18) of S. 2 of the Act. The said sub cl. (b) of Sub S. (18) of S. 2 was substituted w.e.f. 1st April, 1970. The relevant portion of the said sub clause reads as under :