Related Person
Legal definition for Indian law research
Definition
Related person, on a proper interpretation of the definition of 'related person' in sub-s. (4)(c) of s. 4, the words 'a relative and a distributor of the assessee' do not refer to any distributor but they are limited only to a distributor who is a relative of the assessee within the meaning of the Companies Act, 1956. So read, the definition of 'related person' is not unduly wide and does not suffer from any constitutional infirmity on ground of violation of Articles 14 and 19. It is within the legislative competence of Parliament, Union of India v. Bombay Tyre International Ltd., AIR 1984 SC 420: (1984) 1 SCC 467: (1984) 1 SCR 347.
The definition of 'related person' shows that when an assessee is so closely associated with another person, directly or indirectly, in the business, then it could be said that they are 'related persons'. The holding company and subsidiary company have got special significance. There must be mutuality of interest between the two persons, Flash Laboratories Ltd. v. CCE, AIR 2003 SC 1894 (1895): (2003) 2 SCC 86. [Central Excise Act, 1944, s. 4(4)(c)]
The definition of 'related person' shows that when an assessee is so closely associated with another person, directly or indirectly, in the business, then it could be said that they are 'related persons'. The holding company and subsidiary company have got special significance. There must be mutuality of interest between the two persons, Flash Laboratories Ltd. v. CCE, AIR 2003 SC 1894 (1895): (2003) 2 SCC 86. [Central Excise Act, 1944, s. 4(4)(c)]
Definitions are for legal research. Always verify meaning in the context of the statute, judgment, or jurisdiction cited.