Pls clarify the issue.An existing partnership firm availing deduction u/s 80IC can be deprived of the exemption available to it after change in constitution of the firm more than 50%.
03 December 2008
In Sec.80IC there is condition on the setup of business that it shouldn't be established/formed by splitting up or the reconstruction, of a business already in existence. Change in the constitution of firm doesn't amount to Split up or reconstrction. Thus in present case assessee can continue to avail the deduction u/s80IC. There are few condition in case of set-off & carry forward of losses by such partnership firm.
03 December 2008
I completely agree with Mr.Rajdeep Pawar, as I am also handling similar case of partnership firm covered u/s 80IC. In my opinion, This section deals with assesse, and in your case assessee will be the same, i.e. that partnership firm. The change in constitution of firm will not amount to change in assessee.
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