Dismissing the appeal of the revenue the Court held that As per S. 575 of the Companies Act, the conversion of a partnership firm into a company under Part IX causes a statutory vesting of all assets of the firm into the company without the need for a conveyance. The business of the firm is carried on by the company and the latter is eligible for the benefits of S. 80IA (4) of the Act . Order in Chetak Enterpeises v .ACIT ( 2005) 95 ITD 1 (Jodh) (Trib) is approved . ( CA No. 1764 OF 2010, dt. 05.03.2020) (AY. 2002 -03)
CIT v. Chetak Enterprises Pvt. Ltd (2020) 423 ITR 267/ 313 CTR 489/ 187 DTR 351/115 taxmann.com 108 / 272 Taxman 509(SC) ,www.itatonline.org
S. 80IA :Industrial undertakings – Conversion of a partnership firm into a company- Part IX of Companies Act- As per S. 575 of the Companies Act, the conversion of a partnership firm into a company under Part IX causes a statutory vesting of all assets of the firm into the company without the need for a conveyance-The business of the firm is carried on by the company and the latter is eligible for the benefits of S. 80IA (4) of the Act . [ S.80IA(4) , Companies Act , S.575 ]