COMMISSIONER OF INCOME-TAX, MADRAS vs P. N. N. BANK, LTD., SALEM — 1972 PTD 291

Citation: 1972 PTD 291

Court: Madras High Court

Year: 1968

Decision Date: 1968-06-24

Parties: COMMISSIONER OF INCOME-TAX, MADRAS vs P. N. N. BANK, LTD., SALEM

Headnotes

Case cited as 1972 PTD 291

Judgment Text

Court Name: Madras High Court Judge(s): K. Veeraswa mi, Ramaprasada Rao Title: COMMISSIONER OF INCOME-TAX, MADRAS vs P. N. N. BANK, LTD., SALEM Case No.: Tax (Reference No. 70 of 1964) Case No. 263 of 1964 Date of Judgment:1968-06-24 Reported As: 1972 PTD 291 Result: question is answered JUDGMENT JUDGMENT VEEARSWAMI, J.-This reference relating to the assessment years 1955-56 to 1960-61 raises the problem of application, to the facts, of section 12(iv) of the 'Banking Companies Act, 1949, before and after its amendment in 1956. Clause (iv) was recast ire that year and took the shape of subsection (2) of that section. Clause (iv), as originally stood, was to this effect that : "No banking company shall carry on business in any Pro--vince of India unless it satisfies (among other conditions) that the voting rights of any one shareholder do not exceed five per cent. Of the total voting rights of all the sharehol--ders------..--- The section had a proviso with which we are not concerned. As amended in 1956, subsection (2) of section 12 stated that no person holding shares in a banking company shall, in respect of any shares held by him, exercise voting rights on poll in excess of 5 per cent. Of the total voting rights of the shareholders of the banking company. Though, in substance and effect, the amended provision is the same as the unamended one, the former brings out the intent more clearly. By an application of the above provision, the Tribunal held that the assessee was…

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