Comment on the following independent situations, whether Jack Ltd. and Jill Inc. constitute associated enterprises under the provisions of Section 92A of the Income Tax Act, 1961: (iv) Jack Ltd. holds whole of equity sha

As per section 92A of the Income-tax Act, 1961, two enterprises are deemed to be associated enterprises, if at any time during the previous year, one enterprise holds, directly or indirectly, shares carrying not less than 26% of voting power in other enterprise. In this case, Jack Ltd. indirectly (through Rita Ltd.) holds more than 26% equity shares (i.e. 30%) in Jill Inc. and thus they qualify as associated enterprises. Therefore, Jack Ltd. and Jill Inc. are Associated Enterprises.