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Board’s Circular No. 50—CBDTs letter No. 60/26/67-II(AI), dated the November 1970—CBDT Bulletin XVI/156.

 For declaration of an association as a Company u/s 2(17) of Income-tax Act, 1961, the Board laid down the following criteria :—

   (i)  The applicant should be a legal person according to the laws of the country in which it is incorporated; and

  (ii)  The applicant should possess the ordinary characteristics of company limited by shares.

The fulfilment of any one of the following conditions will be considered adequate by the CBDT in the matter of issuing a declaration u/s 2(17).

   (i)  The applicant should possess the characteristics of a company limited by share and be a legal person according to the laws of the country in which it is incorporated.

or

  (ii)  Where the capital is wholly or partly contributed by the Govt., the applicant should be legal entity separate from the Govt. and the capable of holding property independently and suing and being sued according to the laws of the country in which it is established.

or

(iii)  The applicant should be corporation established by the Govt. of the country or State in which it is established.

Any corporation set-up as one person show will not qualify for declaration as a company but corporations set up by a Govt. with capital contributed wholly or in part by the Govt. will so qualify.

[Board’s Circular No. 50—CBDTs letter No. 60/26/67-II(AI), dated the November 1970—CBDT Bulletin XVI/156.]

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One Comment

  1. Kinjal Kapadia says:

    I am looking for the circular referred in this article but unable to find it. Please can you provide a copy of the same to me?

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