Section 80-I deduction was denied for the unexpired period when ...

Conversion from partnership to company doesn't bar 80-I deduction for unexpired period if same activity continues.

Case Laws     Income Tax

September 13, 2024

Section 80-I deduction was denied for the unexpired period when a partnership firm was converted into a private limited company carrying on the same activity. However, based on the Supreme Court's decision in Chetak Enterprises and the Allahabad High Court's ruling in Prisma Electronics, the benefit of Section 80-I deduction should be allowed for the unexpired period even after the conversion from a partnership firm to a private limited company, as long as the same activity is continued. The appeals were allowed, entitling the assessee to the Section 80-I deduction and consequent benefit for the unexpired period.

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