TMI Blog2023 (8) TMI 459X X X X Extracts X X X X X X X X Extracts X X X X ..... e applicable in a case where revised return could not be filed on account of the time taken to grant sanction of the Schemes of Arrangement and Amalgamation by NCLT and section 139(5) of the Act only 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. In the facts and circumstances of that case, Apex Court directed Income-tax department to receive the revised return of income for Assessment Year 2016-17 filed by appellants therein and to complete assessment for the said Assessment Year after taking into account scheme of amalgamation as sanctioned by NCLT. We are also of the view that the decision of the Apex Court in the case of Dalmia Power Ltd. (Supra) would be applicable to the facts and circumstances of the present case. In fact in the impugned order, Respondent no. 1 also accepts this but states that he is bound by CBDT Circular. In the circumstances, we set aside the impugned order dated 3rd June 2022 and direct Respondents to accept and process Petitioner s manual revised return of income for Assessment Year 2014-15 to Assessment Year 2021-22 and pass within 12 weeks ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Listing Obligations and Disclosure Requirements ( LODR ) and SEBI circulars became applicable to the companies and the scheme of arrangement was required to be filed with NCLT. The scheme of arrangement was entered into for the transfer of the manufacturing undertaking of Hind Lamps on a going concern basis to Petitioner by way of demerger in compliance with the conditions specified in section 2(19AA) of the Income Tax Act, 1961 (the Act). The scheme of arrangement was filed with the Mumbai and Allahabad benches of the NCLT. The scheme provided an appointed date of 31st March 2014 and the effective date to be the last date on which the certified copies of the orders of the respective NCLTs are filed with the Registrar of Companies at Mumbai and Allahabad. Various SEBI circulars had to be complied with by Petitioner and the scheme was also filed with the stock exchanges. NCLT at Mumbai, vide order dated 2nd November 2018 (read with a corrigendum order dated 26th December 2018), and NCLT at Allahabad, vide order dated 30th April 2019, respectively, directed to convene a meeting of equity shareholders, secured creditors and unsecured creditors for the purpose of considering and appro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s added to the hardship on the management of the companies in preparation and filing of these documents. 7. Therefore, based on the above, Petitioner was required to file a revised return of income giving effect to the scheme of demerger from the appointed date, i.e., March 31, 2014, i.e., for AY 2014-15 to AY 2021-22. The Petitioner prepared and filed manual revised returns of income as the due date to file the revised return of income under section 139(5) of the Act had expired for each of the years. Further, Hind Lamps also filed manual revised returns of income for AY 2014-15 to AY 2021-22 with the assessing officer having jurisdiction over Hind Lamps and also paid the amount of tax liability arising out of the revised returns of income. 8. Petitioner filed a letter dated January 18, 2022 with Respondent No. 1 for filing of revised returns of income for AY 2014-15 to AY 2020-21 as directed by the NCLTs vide its orders dated December 18, 2019 (Form CAA-7 dated January 7, 2020) and May 21, 2020 approving the scheme of arrangement between Petitioner and Hind Lamps and their respective shareholders and creditors under section 230-232 of the Companies Act, 2013 for the demerge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of income for AY 2021-22 on March 14, 2022 and filed a revised return of income online on March 31, 2022. Petitioner pointed out that at the time of filing the revised return of income, the tax audit of the company after giving effect to the scheme of demerger as per the directions of the NCLT was not finalized and the same was finalized only on April 20, 2022. Petitioner pointed out that after finalization of the tax audit report it was observed that for the year ended March 31, 2020 after giving effect to the scheme of demerger Petitioner was eligible for carry forward and set off of the business loss aggregating to Rs. 22,30,60,283/- as detailed in clause no. 32 of the tax audit report. In order to claim set off of the business loss of AY 2020-21 amounting to Rs. 22,30,60,283/- Petitioner filed a manual return of income. Post set off of business loss, the refund due to Petitioner increased from Rs. 4,86,19,710/- to Rs. 10,47,57,307/-. Petitioner pointed out that as the time to file the revised return of income under section 139(5) of the Act had lapsed and hence, Petitioner filed a manual return of income along with (I) revised computation of total income; (ii) revised special ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turns electronically filed by the assessee is processed by the Central Processing Centre-ITR, Bangalore. Therefore, there is no scope under the provisions of the Act to process any manual return of income by this office. There is no other mechanism available with the office of the undersigned to allow the assessee to file such return of income electronically on the income-tax portal. 13. We are surprised that Respondent no. 1 is relying on Board Circular which has been considered by the Apex Court in the case of Dalmia Power Ltd. (Supra) and still states that he will be bound only by the Board Circular and not the Apex Court Judgment. 14. In fact even in the affidavit in reply filed through one P.K. Vinod Kumar, Assistant Commissioner of Income Tax 2(1)(1) affirmed on 26th July 2023, Respondents are relying on section 170A which has been inserted in the statute by the Finance Act, 2022, w.e.f., 1st April 2022. Respondent no. 1 states that in view of this provision read with CBDT notification dated 19th September 2022 since six months period in the case of Petitioner from NCLT orders has already lapsed, Petitioner to take recourse by making an application before CBDT for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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