https://www.taxtmi.com/caselaws?id=103055 The Supreme Court upheld the Tribunal's decision, ruling in favor of the assessee. It clarified that a company is not liable to pay tax on pre-incorporation profit as it did not exist when the income was earned. The Court emphasized that the entity conducting the business and receiving the income at the time of accrual should bear the tax burden, regardless of any subsequent appropriation by the company post-incorporation. The judgment supported the legal principle that a company only becomes a legal entity upon incorporation, and income earned before that cannot be attributed to the company. en-us Mon, 05 Feb 1996 00:00:00 +0530 Tue, 10 Sep 2013 10:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=103055 The Supreme Court upheld the Tribunal's decision, ruling in favor of the assessee. It clarified that a company is not liable to pay tax on pre-incorporation profit as it did not exist when the income was earned. The Court emphasized that the entity conducting the business and receiving the income at the time of accrual should bear the tax burden, regardless of any subsequent appropriation by the company post-incorporation. The judgment supported the legal principle that a company only becomes a legal entity upon incorporation, and income earned before that cannot be attributed to the company. Case-Laws Companies Law Mon, 05 Feb 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=103055