Scope and the method of applying the provisions of Section 2(18) to foreign concerns.

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..... the Income-tax Act to foreign concerns, which are assessable as 'companies' in terms of the provisions of Section 2(17) of the Income-tax Act, 1961. 2. At the outset, it has to be emphasised that the term 'company' used in the Income-tax Act, as defined in Section 2(17), is wider than the corresponding term in the Indian Companies Act, 1956. As a result, foreign associations, which may not be co .....

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..... d unconditionally by, and were throughout the relevant previous year beneficially held by 'the public'. For this purpose, the expression 'the public' would include the public in India as well as outside. 5. The second test to be fulfilled by foreign association, assessable as 'companies' is that their shares should have been the subject of dealing in any recognised stock exchange in India at any .....

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..... d, the Income-tax, Officers must satisfy themselves that each of three tests has been fulfilled by the concern. It should not be difficult to obtain the relevant particulars from the concerned company, for, it will stand to lose by with-holding them. In case the foreign association as such is not assessable in India but only its subsidiary is, it will be the latter who will be denied the benefits .....

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