Analyze the following situations and find out whether the entities are deemed associated enterprises or not: (ii) In the Board of Directors of C Ltd., there are 12 Directors. Out of that, six Directors have been appointe

Deemed Associated Enterprises (Section 92A(2) of Income-tax Act, 1961): (ii) C Ltd. and D Ltd. (Appointment of Directors): As per Section 92A(2)(f) of the Income-tax Act, 1961, two enterprises shall be deemed to be associated enterprises if one enterprise appoints more than half of the Board of Directors or members of the governing board, or one or more executive directors or executive members of the governing board of the other enterprise. In this case, C Ltd. has 12 Directors. D Ltd. has appointed six Directors. Number of Directors appointed by D Ltd. = 6. Total Directors = 12. Percentage of Directors appointed by D Ltd. = (6/12) x 100 = 50%. Since D Ltd. has appointed exactly half (50%) of the Directors in C Ltd.'s Board, and not 'more than half', C Ltd. and D Ltd. are not deemed associated enterprises under Section 92A(2)(f).