In Brief
The Supreme Court dismissed an income tax appeal by the Commissioner of Income Tax, Udaipur against Chetak Enterprises Pvt. Ltd. The case concerned whether a company formed by converting a partnership firm under the Companies Act, 1956 could claim a tax deduction under Section 80-IA of the Income Tax Act, 1961 for an infrastructure business previously carried on by the partnership under an agreement with the State Government. The Court held that such a converted company, succeeding by operation of law to all partnership assets, rights, and liabilities, does qualify for the deduction. The High Court's view was affirmed as correct.
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