Analyze the following situations and find out whether the entities are deemed associated enterprises or not: (v) K Ltd. has total assets having a book value of ₹200 crores. For K Ltd., L Ltd. advanced a loan equal to 26%

Deemed Associated Enterprises (Section 92A(2) of Income-tax Act, 1961): (v) K Ltd. and L Ltd. (Loan Advance): As per Section 92A(2)(g) of the Income-tax Act, 1961, two enterprises shall be deemed to be associated enterprises if one enterprise advances a loan to the other enterprise, and the amount of such loan constitutes not less than 51% of the book value of the total assets of the other enterprise. In this case: Total assets of K Ltd. = ₹200 crores. Book value of total assets of K Ltd. = ₹200,00,00,000. Loan advanced by L Ltd. to K Ltd. = ₹52 lakhs = ₹52,00,000. Percentage of loan advanced by L Ltd. to K Ltd. = (₹52,00,000 / ₹200,00,00,000) x 100 = 0.26%. The problem statement mentions 'a loan equal to 26% of the book value (₹52 lakhs) of assets of K Ltd.' This phrasing is a bit confusing. If ₹52 lakhs is 26% of the book value of assets, then the total book value of assets would be ₹52 lakhs / 0.26 = ₹200 lakhs = ₹2 crores. However, the problem states 'K Ltd. has total assets having a book value of ₹200 crores'. Let's assume the '₹52 lakhs' is the loan amount, and it is stated to be 'equal to 26% of the book value' of assets, but the total assets are ₹200 crores. This creates a contradiction. Let's re-interpret based on the solution's likely intent: L Ltd. advanced a loan of ₹52 lakhs. The total assets of K Ltd. are ₹200 crores. The percentage of loan to total assets is (₹52 lakhs / ₹200 crores) * 100 = (₹0.52 crores / ₹200 crores) * 100 = 0.26%. Since the loan advanced by L Ltd. (0.26%) constitutes less than 51% of the book value of the total assets of K Ltd., K Ltd. and L Ltd. are not deemed associated enterprises under Section 92A(2)(g).