BAJAJ TEMPO LTD. BOMBAY vs COMMISSIONER OF INCOME TAX,BOMBAY CITY-IIIBOMBAY

The Supreme Court ruled that the appellant company was entitled to claim partial exemption under Section 15C of the Income Tax Act, 1922, despite being formed from an existing business. The Court held that taking premises on lease does not constitute a transfer of the building, and the value of the leased premises is negligible compared to the assets installed. The Court emphasized that the definition of a 'newly established undertaking' should not be unduly restrictive, allowing for economic growth and development.