Dear all,
A partnership firm has opted for conversion into limited company under part IX of the Companies Act, 1956 and has obtained incorporation certificate from registrar of companies. But as the change of constitution in licenses, etc. will take time, can the partnership firm continue in business till that time and effective date of transfer of assets and liabilities can be later than incorporation date? If not, can the firm cotinue the business on behalf of the company till change in licences are made and pass on the surplus earned till that date to the company? If yes, the surplus will be taxed in the hands of partnership or company? If in the hands of the company, whether there can be disallowance of expenses to the company on which tax has been deducted and paid by the firm?
Looking forward to your opinion with judicial precedent, if any.
-Mukesh Joshi
