Dismissing the appeal of the revenue  the Court held that  from a perusal of the provisions, it is evident that sub-sections (1) and (2) of section 92A of the Income-tax Act, 1961 are interlinked and have to be read together. Sub-section (2) of section 92A was amended with effect from April 1, 2002 to clarify that the mere fact of participation by one enterprise in the management or control or capital of the other enterprise, or the participation of one or more persons in the management or control or capital of both the enterprises shall not make them associated enterprises, unless the criteria specified in sub-section (2) are fulfilled. On facts the finding recorded by the Tribunal that the assessee had not complied with the provisions of sub-section (1) of section 92A of the Act, had not been assailed by the Revenue. The Tribunal was right in law in setting aside the disallowance.( AY. 2010-11)