https://www.taxtmi.com/caselaws?id=5499 The Supreme Court held that pre-incorporation profits of a company do not form part of its taxable income. The Court emphasized that a company only comes into existence upon incorporation, and income earned before that belongs to the promoters, not the company. The decision reconciled conflicting views from different High Courts, establishing that tax liability for pre-incorporation profits rests with the entity that earned the income. Therefore, the pre-incorporation profits in question, amounting to &8377;24,862, were deemed not taxable in the hands of the assessee-company for the year 1974-75. en-us Mon, 05 Feb 1996 00:00:00 +0530 Fri, 01 Sep 2023 11:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5499 The Supreme Court held that pre-incorporation profits of a company do not form part of its taxable income. The Court emphasized that a company only comes into existence upon incorporation, and income earned before that belongs to the promoters, not the company. The decision reconciled conflicting views from different High Courts, establishing that tax liability for pre-incorporation profits rests with the entity that earned the income. Therefore, the pre-incorporation profits in question, amounting to &8377;24,862, were deemed not taxable in the hands of the assessee-company for the year 1974-75. Case-Laws Income Tax Mon, 05 Feb 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5499