'Associated enterprise' under Section 92A includes:
AOnly parent-subsidiary
BHolding ≥26% voting rights, common parent, etc.
COnly group companies
DOnly direct shareholders (per relevant Section)
Answer & Solution
Correct answer: B. Holding ≥26% voting rights, common parent, etc.
1. Section 92A defines AE and lists deemed AE relationships.
2. Deemed AE: holding ≥26% voting rights, common holding by third entity, advancing 51% book-value loans, guaranteeing 10% borrowings, control by same individual/HUF.
3. Relationship may exist any time during PY.
_Source: ICAI BoS CA Final Paper 7, Ch 24 "Transfer Pricing"_
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