Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Income Tax AcT |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Companies Act, 1956 (1 of 1956) Income Tax Act, 1961 (43 of 1961) |
Case(s) Referred | Referred Case 0 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Income Tax Act, 1961 – 80-IA – Matter relates to Assessment Year 2002-2003 (Financial year being 2001-2002 i.e. 01.04.2001 to 31.3.2002) – An erstwhile partnership firm- M/s. Chetak Enterprises entered into agreement with Govt. of Rajasthan for construction of road and collection of road/toll tax– Firm converted into a private limited company (the respondent/assessee) under 1956 Act – Road was inaugurated and respondent started collecting toll tax – Claimed deduction u/s.80-IA – Declined by assessing officer – Reversed by Commissioner of Income-Tax (Appeals) – Confirmed by Income Tax Appellate Tribunal (ITAT) – Upheld by High Court – Held: All properties, movable and immovable (including actionable claims) belonging to or vested in a company at the date of its registration would vest in the company as incorporated under the Act – Property acquired by a promoter can be claimed by the company after its incorporation without any need for conveyance on account of statutory vesting – On such statutory vesting, all the properties of the firm, in law, vest in the company and the firm is succeeded by the company – Firm ceases to exist and assumes the status of a company after its registration as a company – For the purpose of considering compliance of clause (a) of s.80-IA(4)(i), the assessee must be an enterprise carrying on business of (i) developing (ii) maintaining and operating or (iii) developing, maintaining and operating any infrastructure facility, which enterprise is owned by a company registered in India – This is fulfilled in the present case, as the registered firm was converted into a company u/Part IX of the 1956 Act on 28.3.2000, which is before the commencement of Assessment Year 2002-2003 – For the assessment year, the activity 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 27.3.2000 and the same was inaugurated on 01.04.2000, whereafter toll tax was being collected by the assessee – Also, the stipulation in clause (b) of s. 80-IA(4)(i) is fulfilled by the assessee in the present case – ITAT and the High Court justly affirmed the view taken by the first appellate authority – Companies Act, 1956 – Part IX – s.575. |
Judge | Hon'ble Mr. Justice A.M. Khanwilkar |
Neutral Citation | 2020 INSC 279 |
Petitioner | Commissioner Of Income Tax, Udaipur |
Respondent | M/s. Chetak Enterprises Pvt. Ltd. |
SCR | [2020] 4 S.C.R. 44 |
Judgement Date | 2020-03-05 |
Case Number | 1764 |
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