Amendment of section 2

Section 3 of the Finance Act, 1971 deals with amendment of section 2. CHAPTER III INCOME-TAX Amendment of section 2. The Act was enacted on 10 Aug 1971.

CHAPTER III

INCOME-TAX

Amendment of section 2.

3. In section 2 of the Income-tax Act,—

(a) for clause (17), the following clause shall be substituted, namely:—

'(17) "company"- means—

(i) any Indian company, or

(ii) any body corporate incorporated by or under the laws of a country outside India, or

(iii) any institution, association or body which is or was assessable or was assessed as a company for any assessment year under the Indian Income-tax Act, 1922 (11 of 1922) or which is or was assessable or was assessed under this Act as a company for any assessment year commencing on or before the' 1st day of April, 1970, or

(iv) any institution, association or body, whether incorporated or not and whether Indian or non-Indian, which is declared by general or special order of the Board to be a company:

Provided that such institution, association or body shall be deemed to be a company only for, such assessment year or assessment years (whether commencing before the 1st day of April, 1971 or on or after that date) as may be specified in the declaration;';

(b) in clause (18), alter sub-clause (a), the following sub-clauses shall be inserted, namely: —

"(aa) if it is a company which is registered under section 25 of the Companies Act, 1956 (1 of 1956); or

(ab) if it is a company having no share capital and if, having regard to its objects, the nature and composition of its membership and other relevant considerations, it is declared by order of the Board to be a company in which the public are substantially interested:

Provided that such company shall be deemed to be a company in which the public are substantially interested only for such assessment year or assessment years (whether commencing before the 1st day of April, 1971 or on or after that date) as may be specified in the declaration; or";

(c) in clause (26),—

(i) after sub-clause (i), the following sub-clauses shall be inserted, namely: —

"(ia) a corporation established by or under a Central, State or Provincial Act;

(ib) any institution, association or body which is declared by the Board to be a company under clause (17)',";

(ii) in the proviso, for the words "registered office of the company", the words "registered or, as the case may be, principal office of the company, corporation, institution, association or body" shall be substituted;

(d) after clause (43A), the following clause shall be inserted with effect from the 1st day of January, 1972, namely:—

'(43B) "Tax Recovery Commissioner" means a Commissioner or an Assistant Commissioner of Income-tax who may be authorised by the Central Government, by general or special notification in the Official Gazette, to exercise the powers, of a Tax Recovery Commissioner;'.

[Finance (No.

2) Act, 1971]

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Section 3, The Finance Act, 1971 (Act 32 of 1971).