PUNJAB PRODUCE AND TRADING CO. LTD. vs C.I.T. WEST BENGAL, CALCUTTA

The Supreme Court held that under Section 23A(9) of the Income-tax Act, 1922, both conditions in clause (b)(iii) must be fulfilled for a company to be deemed as one in which the public are substantially interested. The Court distinguished the case from Star Company Ltd. and clarified that the word 'or' in this context does not imply disjunction but rather requires both conditions to be satisfied. The imposition of additional super-tax without following the provisions of Section 34(1) was deemed valid as the company did not meet the necessary criteria.