Analyze the following situations and find out whether the entities are deemed associated enterprises or not: (iii) E Ltd. directly participated in the management of F Ltd. and F Ltd. directly participated in the manageme

Deemed Associated Enterprises (Section 92A(2) of Income-tax Act, 1961): (iii) E Ltd., F Ltd., and G Ltd. (Direct and Indirect Participation in Management): As per Section 92A(2)(a) of the Income-tax Act, 1961, two enterprises shall be deemed to be associated enterprises if one enterprise holds, directly or indirectly, shares carrying not less than 26% of the voting power in the other enterprise. Section 92A(2)(b) states that if one enterprise participates, directly or indirectly, or through one or more intermediaries, in the management or control or capital of the other enterprise. In this situation: E Ltd. directly participated in the management of F Ltd. This makes E Ltd. and F Ltd. associated enterprises. F Ltd. directly participated in the management of G Ltd. This makes F Ltd. and G Ltd. associated enterprises. By virtue of the indirect participation rule (through one or more intermediaries), if E Ltd. participates in F Ltd.'s management, and F Ltd. participates in G Ltd.'s management, then E Ltd. indirectly participates in the management of G Ltd. Therefore, E Ltd., F Ltd., and G Ltd. are all deemed associated enterprises .