https://www.taxtmi.com/caselaws?id=103054 The Supreme Court held that a company is not liable to pay tax on pre-incorporation profits as it becomes a legal entity only upon incorporation. The Court emphasized that the liability to pay tax arises after incorporation when the company can choose to accept such profits as its own. The decision favored the assessee, ruling that the company was not responsible for tax on the pre-incorporation profits. The Court did not address the tax treatment of profits appropriated by the company post-incorporation, and no costs were awarded in the judgment. en-us Mon, 05 Feb 1996 00:00:00 +0530 Tue, 10 Sep 2013 10:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=103054 The Supreme Court held that a company is not liable to pay tax on pre-incorporation profits as it becomes a legal entity only upon incorporation. The Court emphasized that the liability to pay tax arises after incorporation when the company can choose to accept such profits as its own. The decision favored the assessee, ruling that the company was not responsible for tax on the pre-incorporation profits. The Court did not address the tax treatment of profits appropriated by the company post-incorporation, and no costs were awarded in the judgment. Case-Laws Companies Law Mon, 05 Feb 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=103054