COMMISSIONER OF INCOME-TAX, BOMBAY vs JUBILEE MILLS LTD., BOMBAY

The Supreme Court interpreted Section 23A of the Indian Income-tax Act, 1922, which allows the Income-tax Officer to assess individual members of a company on undistributed income under certain conditions. The Court held that a company is not considered to have the public substantially interested if a group holds more than 75% of the voting power, as was the case with the partners of the Managing Agents. The Court concluded that the shares must be held unconditionally and beneficially by the public, and since the controlling group acted in their own interest, Section 23A was applicable to the company in question.