Exemption for post nationalisation lending excluded when banking is the company's primary activity; statutory lending limits must be observed. The circular applies the primary object test to conclude that an erstwhile banking company whose principal purpose was banking is not covered by the exemption for companies established primarily for financing industries; incidental advances made post nationalisation do not remove the statutory restrictions on lending, and officers must ensure compliance with the prescribed lending limits for such post nationalisation money lending and financing transactions.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Exemption for post nationalisation lending excluded when banking is the company's primary activity; statutory lending limits must be observed.
The circular applies the primary object test to conclude that an erstwhile banking company whose principal purpose was banking is not covered by the exemption for companies established primarily for financing industries; incidental advances made post nationalisation do not remove the statutory restrictions on lending, and officers must ensure compliance with the prescribed lending limits for such post nationalisation money lending and financing transactions.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
