Under section 162(1)(b) of the Income-tax Act, 2025, an enterprise is an associated enterprise of…

Section 162(1)(b) of the Income-tax Act, 2025 treats an enterprise as associated with another where it has advanced a loan to the other that constitutes not less than "51%" of the book value of the other's total assets. The 26% figure in section 162(1)(a) relates to voting power, not loans. This corresponds to section 92A of the repealed Income-tax Act, 1961.