BANERJEE, J.

1. IN this reference we are required to give our opinion on the following question :--

"Whether in the facts and circumstances of these cases, the Tribunal was right in holding that the directors of the respondent company had a controlling interest in it as contemplated by s. 2(21) of the EPT Act."

This reference has been made at the instance of the CIT of Excess Profits Tax Act, West Bengal, and arises out of five consolidated applications made under the Excess Profits Tax Act covering the chargeable accounting periods ended 31st Dec., 1939, to 31st Dec., 1943. The point involved in them is the same. The dispute before the AAC and the Tribunal was whether the respondent company was or was not a director controlled company within the meaning of s. 2(21) of the Excess Profits Tax Act, 1940, during the chargeable accounting periods in question. The material portion of that section is as follows :

"Statutory percentage" means--(a) in relation to a business carried on by a body corporate (other than a company the directors whereof have a controlling interest therein), eight per cent. per annum ; . . . . (c) in relation to a business to which sub-cl. (a) does not appl