sec 293A ~ political contributions

 

Hi Law Experts,

Section 293A of the cos. act requires a min. 3 FINANCIAL YEARS existence of the co.

Can sm 1 explain the meaning of FINANCIAL YEAR??

 

 

To be more specific, is a co. reqd to be in existence for 3 FULL FINANCIAL YEARS or 2 FULL FY + 1 PART FY will suffice....

I got lost even more after going thru CA Final - nov 02 question, extract of soln.  goes as below :

"If the co. were incorporated on 1.10.99, it may make the pol contrib. as on 1.11.02."

My doubt is what is the period of FY assumed in this case? Does that mean it ends on 31March in all the three years.


Thanks in anticipation/Jatin


Replies (1)

As per my understanding and keeping in view the intention of law behind introduction of 3 years period -- If we take the meaning of financial year April to March next year--than that would be literal interpretation of financial year.


So the answer given in above example i.e. 01.11.02 is correct.


To conclude in section 293A financial year mean completion of a period of 36 months or completion of 3 calendar years.


Views of other members solicited.


Regards

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