1993 (2) TMI 30

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..... the sake of convenience. The assessment years involved are 1968-69 to 1971-72 and 1975-76. The common questions raised in these references read as under Income-tax Reference No. 158 of 1980 : "(i) On the facts and in the circumstances of the case, whether the shares beneficially held by charitable trusts could be said to be held by the 'public' ? (ii) On the facts and in the circumstance .....

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..... f the Income-tax Act, 1961 (for short, "the Act"), as it stood in each of the years under reference, he pointed out that, for the assessment years 1968-69 and 1969-70, the answer to the question raised has to be Oven in favour of the Revenue in view of the decision of this court in the case of CIT v. Indian Hotels Co. Ltd. [1983] 141 ITR 343. It may be mentioned that, in the said reported case, th .....

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..... item (B) are fulfilled, namely : (A) shares in the company (not being shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits) were, as on the last day of the relevant previous year, listed in a recognised stock exchange in India in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956), and any rules made there under: ( .....

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..... as a company in which the public are substantially interested. Inviting our attention to the last sentence of paragraph 11 of the order of the Tribunal under reference, learned counsel for the assessee highlighted the fact that it was not in dispute that the shares of the assessee-company were quoted in the stock exchange and were freely transferable. In this view of the matter, he submitted that, .....

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..... not disputed this fact. In this view of the matter, we answer all the three questions for these two years in favour of the Revenue and against the assessee. As regards the assessment years 1970-71, 1971-72 and 1975-76, we are of the opinion that, in view of the substitution of sub-clause (b) of clause (18) of section 2 of the Act, with effect from April 1, 1970, coupled with the clear finding o .....

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