COMMISSIONER OF INCOME-TAX, NEW DELHI(NOW RAJASTHAN) vs EAST WEST IMPORT & EXPORT (P) LTD.,(NOW KNOWN AS ASIAN DIST

The Supreme Court held that under Section 23A(1) of the Income Tax Act, 1922, the term 'in the course of such previous year' implies a continuous period throughout the year, not just a part of it. The Court found that the assessee company could not be considered a company in which the public were substantially interested, as the shares were not freely transferable for a significant portion of the previous year. Consequently, the Court allowed the Revenue's appeal and set aside the High Court's order, denying the tax benefit claimed by the assessee.