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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 ..... rementioned appeals i.e. ITA-53- 2002, ITA-40-1999, ITA-101-2003, ITA-54-2002 and ITA-206-2002, as the issue involved therein is identical. However, for the purpose of disposal of these appeals, main/common order is being passed in ITA-40-1999. 2. The issue raised in the present appeal is no more res integra and we must appreciate the stand taken by the learned Senior counsel for the revenue with regard to the judgment cited at Bar i.e. Commissioner of Income Tax v. Chetak Enterprises Pvt. Ltd., [2020] 423 ITR 267 (SC). 3. In the present appeal i.e. ITA-40-1999, the appellant(s) - assessee has challenged the order dated 18.01.1999 passed by ITAT in Appeal No.ITA No.2131/Chandigarh/91 for Assessment Year 1990-91 and the orders passed by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plant and machinery worth Rs. 2,41,922/-, the machinery taken over by M/s Micromation company was of the value of Rs. 1,03,163/- and the explanation to sub-section 80(I)(2) of the Income Tax Act and the proviso thereto provided that the total value of plant and machinery transferred should not exceed 20% of its value used for machinery or plant for business. The appeal preferred by the appellant against the order by the Assessing Officer was rejected holding that benefit of Section 80(I) of the Income Tax Act was to be given only if the undertaking was not found by splitting up or reconstruction of business already in existence or by transfer to new business machinery or plant previously used for any purpose. Appeal before the ITAT by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ired 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. The firm ceases to exist and assumes the status of a company after its registration as a company. A priori, it must follow that the business is carried on by the enterprise owned by a company registered in India and the agreement entered into between the erstwhile partnership firm and the State Government, by legal implication, assumes the character of an agreement between the company registered in India and the State Government for (i) developing, ii) maintaining and operating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -), dated December 13, 1963, indicating that the benefit of section 84 is attached to the undertaking and not to the owner thereof and, consequently, the successor would be entitled to the benefit for the unexpired period of five years provided the undertaking is taken over as a running concern. 12. The same principle is applicable in the instant case. Admittedly, the undertaking was in existence since 2002. The proprietorship concern changed into a partnership firm. The benefit under section 80-IB of the Act is available to the partnership firm and the conditions imposed under section 80-IB(2)(i) does not come in the way." 11. In the related appeals, the issue is same, except that the same are for the subsequent Assessment Years. 12. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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