Section 3 in The Companies (Temporary Restrictions On Dividends) Act, 1974
3. Companies to which the Act applies. This Act shall apply to the following categorie' s of companies, namely:-
(a)a company in which the public are substantially interested, as defined in clause (18) of section 2 of the Income- tax Act, 1961 ; (43 of 1961 )(b)a company, at least seventy- five per cent. of the share capital of which is, throughout the financial year for which any dividend is declared or paid, beneficially held by an institution or fund established in India for a charitable purpose, the income from dividend whereof is exempt from income- tax tinder section 11 of the Income- tax Act, 1961 ; (43 of 1961 )(c)an Indian company whose business consists mainly in the construction of ships or in the manufacture or processing of goods or in mining or in the generation or distribution of electricity or any other form of power;(d)an Indian company, the value of whose capital assets, being machinery or plant (other than office appliances or road transport vehicles), as shown in its books on the last day of the financial year for which any dividend is declared or paid, is fifty lakhs of rupees or more;(e)a company which has been exempted under sub- section (3) of section 104 of the Income- tax Act, 1961 , (43 of 1961 ) from the operation, of that section. Explanation I.- For the purpose of clause (c), the business of a company shall be deemed to consist mainly in the construction of ships or in the manufacture or processing of goods or in mining or in the, generation or distribution of electricity or any other form of power, if the income attributable to any of the aforesaid activities included in its gross total income for the relevant financial year is not less than fifty- one per cent. of such total income. Explanation II.- For the purposes of clauses (c) and (d)," Indian company" has the meaning assigned to it in clause (26) of section 2 of the Income- tax Act, 1961 , (43 of 1961 .) but shall not include a corporation established by or under a Central, State or Provincial Act.
