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TMI Blog2024 (9) TMI 653X X X X Extracts X X X X X X X X Extracts X X X X ..... Allahabad High Court in Prisma Electronics [ 2014 (8) TMI 209 - ALLAHABAD HIGH COURT] in regard to the scope of benefit of Section 80-I upon the conversion of a proprietorship concern or the partnership firm to a Private Limited Company, is answered in favour of the assessee. We allow these appeals and hold the appellant(s) to be entitled the benefit u/s 80-I and the consequent benefit of deduction for the unexpired period. Decided in favour of assessee. - HON BLE MR. JUSTICE SANJEEV PRAKASH SHARMA And HON'BLE MR. JUSTICE SANJAY VASHISTH Mr. Alok Mittal, Advocate, Mr. Ishwinder Singh, Advocate and Mr. Shubham Thakur, Advocate for the appellant(s) assessee Mr. Yogesh Putney, Sr. Standing Counsel and Mr. Vaibhav Gupta, Standing Counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was no revaluation of the assets. As per the Memorandum of Association (MoA) of the appellant company, it was to take over the existing business of the Micromation of the partnership concern. 5. Section 80-I allows deduction in respect of profits and gains to a firm or a proprietorship concern upto 20% of the such profits and gains, while deductions on the profits is available upto 25% to a Private Limited Company. Apparently, the partnership concern was therefore, converted into a Private Limited Company with the aforesaid aspect in mind. 6. Be that as it may, the appellant company filed the return declaring income of Rs.1,88,100/- on 31.12.1990, which was selected for scrutiny and the respondents disallowed the deduction claimed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mined the identical question i.e.; what is the effect of conversion of partnership firm into a company under Part IX of the Companies Act, 1956 ? that can be discerned from Section 575 of the Companies Act, which reads thus : 575. Vesting of property on registration. All property, movable and immovable (including actionable claims), belonging to or vested in a company at the date of its registration in pursuance of this Part, shall, on such registration, pass to and vest in the company as incorporated under this Act for all the estate and interest of the company therein. It is manifest that all properties, movable and immovable (including actionable claims) belonging to or vested in a company at the date of its registration would vest in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty undertaken by the assessee is only maintaining and operating or developing, maintaining and operating the infrastructure facility, inasmuch as, the construction of the road was completed on March 27, 2000 and the same was inaugurated on April 1, 2000, whereafter toll tax was being collected by the assessee-company. 10. In another case involving transfer of industrial undertaking from proprietorship concern to a Company, the Division Bench of Allahabad High Court, in the case of Commissioner of Income-Tax vs. Prisma Electronics, 2015 (377) ITR 207 : Law Finder Doc Id # 814223, held as under:- 11. From a perusal of the aforesaid provision, it is clear that section 84 is more or less the same as provided in section 80- IB of the Act. The Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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