815/CBDT. - Income Tax - 815/CBDT

INSTRUCTION NO. 815/CBDT Dated : December 20, 1974 Attention is invited to Board's Institution No.676 (F.No.164/3/73-IT(AI) dated 5.4.74) on the definition of "company in which the public are substantially interested", as amended by the Finance Act, 1965. It has been explained in these instructions that in the light of the Kerala high Court decision in CIT Vs Aspinwall Co. Ltd. and the opinion of the Additional Solicitor General thereon, the liberalised definition of a "company in which the public are substantially interested" as introduced in the Finance Act, 1965 would be available for assessments prior to 1965-66 also. It was directed that all proceedings pending on this issue for and up to the assessment year 1965-66 be regulated in the light of the clarifications issued. 2. In audit report of the Comptroller and Auditor General for the year 1971-72, one such case had come up for consideration where the revenue involved was Rs.8.79 lakhs. In the light of this case and the instructions issued by the Board, referred to above,, it is considered desirable that the number of such cases where the liberalised definition of a "company in which the public are substantially interested" have been included either prior to or after the instructions cited above have issued. A review of such cases may be carried out and reported in the enclosed proforma. 3. The results of the review may be communicated so as to reach the Board by 31st January, 1975.