https://www.taxtmi.com/caselaws?id=276237 Section 23A(1) exemption depended on two cumulative conditions: the public had to beneficially hold at least 25% of the voting power, and the relevant shares also had to be subject to stock exchange dealings or be in fact freely transferable. The court treated stock exchange quotations as only prima facie evidence and found that static beneficial shareholding did not prove actual open-market dealings. It further held that articles allowing directors an unqualified veto over transfers negatived free transferability. As the second condition was not proved, the assessee was not entitled to the benefit of the third proviso and its Explanation, and the order under section 23A(1) was upheld. en-us Mon, 17 Feb 1964 00:00:00 +0530 Fri, 02 Nov 2018 18:11:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276237 Section 23A(1) exemption depended on two cumulative conditions: the public had to beneficially hold at least 25% of the voting power, and the relevant shares also had to be subject to stock exchange dealings or be in fact freely transferable. The court treated stock exchange quotations as only prima facie evidence and found that static beneficial shareholding did not prove actual open-market dealings. It further held that articles allowing directors an unqualified veto over transfers negatived free transferability. As the second condition was not proved, the assessee was not entitled to the benefit of the third proviso and its Explanation, and the order under section 23A(1) was upheld. Case-Laws Income Tax Mon, 17 Feb 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276237