2006 (9) TMI 585

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..... ant failed to utilize such foreign exchange for such import in contravention of section 8(3) read with section 8(4) of the FER Act, 1973. According to Shri Sardool Dilip Shah, Chartered Accountant, the appellant has never received remittance of US $ 180000 and a certificate in this regard is given by authorized banker, i.e. State Bank of India. According to him, letter dated 3-3-2002 of State Bank of India clearly says that this remittance of foreign exchange of US $ 180000 does not pertain to the appellant herein, i.e. M/s. Asian PPG Industries Ltd. He has led us to the letter of the State Bank of India. After looking at this situation we permitted full dispensation to the appellant by order dated 1-11-2004. Presently, we proceed to dispos .....

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..... nt than shareholders. It was observed as follows :- When the memorandum is duly signed and registered, though there be only seven shares taken, the subscribers are a body corporate capable forthwith of exercising all the functions of an incorporated company. It is difficult to understand how a body corporate thus created by statute can lose its individuality by issuing the bulk of its capital to one person. The company is at law a different person altogether from the subscribers of the memorandum; and though it may be that after incorporation the business is precisely the same as before, the same persons are managers, and the same hands receive the profits, the company is not in law their agent or trustee. The statute enacts nothing as .....

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..... as we can upon the analogy of an individual. A company cannot eat or sleep, but it can keep house and do business. We ought, therefore, to see where it really keeps house and does business. An individual may be of foreign nationality and yet reside in the United Kingdom, so may a company. Otherwise, it might have its chief seat of management and its centre of trading in England under the protection of English laws, and yet escape the appropriate taxation by the simple expedient of being registered abroad and distributing its dividends abroad. A company resides for purposes of Income-tax where its real business is carried on. The real business is carried on where the central management and control actually resides. 7. From above, we are .....

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