Exemption u/s 80IC

[Amrish Gupta]

Our asseese is running a factory claiming exemption u/s 80IC .Our asseese is a sole prop. Now our assesse has decide to convert his sole prop. in to partnership firm. Exemption period u/s 80IC is yet to be finished. Now my queery is whether the new partnership firm is eligible to enjoy the expemtion u/s 80IC for the remaining period or not.

AI Summary

Can a Partnership Firm Continue Tax Exemption Under Section 80IC After Conversion from Sole Proprietorship? A sole proprietor operating a factory and claiming an exemption under Section 80IC of the Income Tax Act is considering converting the business into a partnership firm. The exemption period is ongoing, and the query is whether the new partnership can continue to claim the exemption. One respondent believes conversion is allowed as long as the business remains in the same exemption area. Another suggests the section focuses on the undertaking, not the assessee, allowing the exemption. However, advice from Dr. Girish Ahuja indicates the change in business constitution disqualifies the new partnership from claiming the remaining exemption period, leading to a contradictory situation.