Meaning of Associated Enterprise - Section 92A - Definition / Legal Terminology - Income Tax

Meaning of Associated Enterprise - Section 92A Meaning of Associates Enterprises For the purpose of sections 92, 92B, 92C, 92D, 92E and 92F, associated enterprise , in relation to another enterprise, means an enterprise - (a) which participates, directly or indirectly, or through one or more intermediaries, in the management or control or capital of the other enterprise; or (b) in respect of which one or more persons who participate, directly or indirectly, or through one or more intermediaries, in its management or control or capital, are the same persons who participate, directly or indirectly, or through one or more intermediaries, in the management or control or capital of the other enterprise. [ Section 92A(1) ] Deemed Associated Enterprises Two enterprises shall be deemed to be associated enterprises if, at any time during the previous year (13 Categories) : One enterprise holds, directly or indirectly, shares carrying not less than 26% of voting power in the other enterprise. Any person holds directly or indirectly, shares carrying not less than 26% of voting power of each of such enterprise. A loan advanced by one enterprise to the other enterprise constitutes not less than 51% of the book value of the total assets of the other enterprise. One enterprise g uarantees not less than 10% of the total borrowings of the other enterprise. More than of the Board of Directors or Members of Governing Board or one or more Executive Director or Executive Member of Governing Board of one enterprise appointed by other enterprise. More than of the Board of Directors or Members of Governing Board or one or more Executive Director or Executive Member of Governing Board of each of the two enterprise appointed by same person or persons. The business of one enterprise is wholly dependent on the use of know-how, patent, technical know-how, etc. of which the other enterprise is the owner or in respect of which the other enterprise has exclusive rights. 90% or more of the raw material and consumables required for the manufacture or processing of goods or articles carried out by one enterprise, is supplied by the other enterprise. The goods or articles manufactured or processed by one enterprise are sold to the other enterprise and the prices and other conditions are influenced by such other enterprise. Where one enterprise is controlled by an individual the other enterprise is also controlled by such individual and his relative or jointly by such individual and relative of such individual Where one enterprise is controlled by a HUF , the other enterprise is controlled by a member of such HUF or relative of such member or jointly by such member his relative. Where one enterprise is a Firm, AOP or BOI, and the other enterprise holds not less than 10% interest in such Firm, AOP or BOI. There exists between the two enterprises, any relationship of mutual interest, as may be prescribed. [ Section 92A(2) ]