COMMISSIONER OF INCOME-TAX,WEST BENGAL vs MESSRS. JEEWANLAL LTD.

The Supreme Court ruled that under Section 2(11) of the Excess Profits Tax Act, 1940, a company is considered 'director controlled' only if its directors hold a majority of the voting shares and are registered as such. The Court clarified that the authorization of a director by another company to vote on its behalf does not suffice to classify the former as a director controlled company. The appeal from the Calcutta High Court's decision affirming the Income-tax Appellate Tribunal's ruling was dismissed, upholding the Tribunal's interpretation of controlling interest.