https://www.taxtmi.com/caselaws?id=25711 Section 23A of the Indian Income-tax Act, 1922 targeted closely held companies that retained profits to avoid tax, and its exemption depended on the cumulative conditions in Explanation 1 to section 23A(9): at least 50% of voting power had to be beneficially held by the public, and the company's affairs or relevant voting shares could not be concentrated in fewer than six persons. The analysis states that these conditions were not alternative. On the stated facts, the controlling block of vote-carrying shares remained with the Hindu undivided family of Seth Banarsi Das and its connected group, with blank-transfer shares also counted in that holding, so public shareholding fell below the statutory minimum and control was concentrated in fewer than six persons. The assessee could not displace that finding. en-us Thu, 16 Oct 1986 00:00:00 +0530 Sat, 30 Jan 2010 13:03:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25711 Section 23A of the Indian Income-tax Act, 1922 targeted closely held companies that retained profits to avoid tax, and its exemption depended on the cumulative conditions in Explanation 1 to section 23A(9): at least 50% of voting power had to be beneficially held by the public, and the company's affairs or relevant voting shares could not be concentrated in fewer than six persons. The analysis states that these conditions were not alternative. On the stated facts, the controlling block of vote-carrying shares remained with the Hindu undivided family of Seth Banarsi Das and its connected group, with blank-transfer shares also counted in that holding, so public shareholding fell below the statutory minimum and control was concentrated in fewer than six persons. The assessee could not displace that finding. Case-Laws Income Tax Thu, 16 Oct 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25711