Company in which the public are substantially interested: foreign concerns must satisfy three statutory tests before tax benefits apply. Foreign associations assessable as 'companies' must meet all three cumulative tests in Section 2(18)(b): (1) equity shares carrying not less than fifty per cent of voting power allotted to or beneficially held by the public (including abroad) throughout the relevant year; (2) shares dealt in on a recognised Indian stock exchange during the year or freely transferable to the public; and (3) at no time were the company's affairs or shares carrying more than fifty per cent voting power controlled or held by five or fewer persons. Tax officers must verify compliance and may accept chartered accountant certificates subject to checks.
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.
Company in which the public are substantially interested: foreign concerns must satisfy three statutory tests before tax benefits apply.
Foreign associations assessable as 'companies' must meet all three cumulative tests in Section 2(18)(b): (1) equity shares carrying not less than fifty per cent of voting power allotted to or beneficially held by the public (including abroad) throughout the relevant year; (2) shares dealt in on a recognised Indian stock exchange during the year or freely transferable to the public; and (3) at no time were the company's affairs or shares carrying more than fifty per cent voting power controlled or held by five or fewer persons. Tax officers must verify compliance and may accept chartered accountant certificates subject to checks.
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