Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2023 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (4) TMI 951 - HC - Income TaxRevised return of income in terms of the scheme of amalgamation approved by the NCLT - Assessment of income post-amalgamation - Period of limitation for revision of return expired - filing of modified return of income following business reorganization in terms of Section 170A - HELD THAT:- Scheme of amalgamation was approved and sanctioned by the NCLT after the due date of filing the revised return for the assessment year 2016-2017. Supreme Court referred to the provisions of Section 139(5) of the Act and opined that the said provision would not be applicable in a case where revised return could not be filed on account of the time taken to grant sanction to the scheme of amalgamation by NCLT. Section 139(5) of the Act deals with filing of revised return within a period of one year upon discovery of an omission or wrong statement made in the initial return of income. Supreme Court also referred to Section 170 of the Act and held that it is incumbent upon the Income Tax Department to assess the total income of the successor company in respect of the previous assessment year after the date of succession. Income Tax Department is required to assess the income of the successor company after taking into account the revised return filed after amalgamation of the company. In the facts and circumstances of that case, Supreme Court directed the Income Tax Department to receive the revised return of income for the assessment year 2016-2017 filed by the appellants therein and to complete the assessment for the said assessment year after taking into account the scheme of amalgamation as sanctioned by the NCLT. Upon thorough consideration, we are of the view that the decision of the Supreme Court in Dalmia Power Limited [2019 (12) TMI 991 - SUPREME COURT] is squarely applicable to the facts of the present case. It is because of circumstances beyond the control of the petitioner that the revised return could not be filed before the due date. However, under Section 170A of the Act, Income Tax Department is obligated to assess the total income of the assessee of the previous assessment year post-amalgamation.
|