JUDGMENT

TULZAPURKAR, J. :— This appeal by special leave raises the question whether on the facts and in the circumstances of the case the recommendation of a statutory body (Specified Authority under Section 72-A of the Income-tax Act, 1961) and the Central Governments decision based on it - a matter of subjective satisfaction - were open to judicial review and whether the High Court was justified in interfering with the same ?

2. The facts giving rise to the aforesaid question may he stated : Mahindra and Mahindra Limited (for short M and M) was incorporated under he Indian Companies Act 1913 and is thus duly registered under the Companies Act. 1956 : its share capital has been widely held. the principal shareholders being the public financial institutions to the extent of about 40 per cent of its equity share capital; it is engaged in the manufacture inter alia of jeeps and other motor vehicles on a large scale.

3. M/s. International Tractor Company of India Limited (for short ITCI) was incorporated on April 13, 1963 under the Companies Act, 1956 as a public company and was carrying on the business of manufacture and safe of agricultural tractors and implements which are an essent