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TMI Blog2024 (2) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... refers to the consolidated return of income at others - whether the impugned assessment order calls for interference because the assessment was not entirely based on the modified return after amalgamation? HELD THAT:- A successor of a business reorganization is required to furnish the modified return within six months from the end of the month in which the order of the court or tribunal sanctioning such business reorganization is issued. The order of the NCLT Chennai in [ 2022 (4) TMI 1591 - NATIONAL COMPANY LAW TRIBUNAL CHENNAI] is on record. This order was issued on 18.04.2022. Since the order of the NCLT Chennai was issued on 18.04.2022, the petitioner had six months from 30.04.2022 to file the modified return. The petitioner has placed on record an email dated 22.06.2022 which indicates that the option to file the modified return under Section 170A of the Income Tax Act had not been enabled in the portal. In those circumstances, it appears that the petitioner submitted a physical copy of such modified return on 24.08.2022. Since the last date for filing the return was expiring earlier, the petitioner previously submitted the return of the company on standalone basis on 14.03.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g approval for a scheme of amalgamation. Under the said scheme of amalgamation, the petitioner states that Cheran Synthetics was merged with the petitioner and dissolved without being wound up. The petitioner also states that the appointed date under the scheme is 01.04.2020. The NCLT Chennai sanctioned the scheme on 18.04.2022 and the scheme became effective from 01.04.2020 upon such sanction. Since the last date for filing return of income was in March 2022, it is stated that the petitioner was constrained to file the standalone return of income on 14.03.2022. 2. By relying on Section 170A of the Income Tax Act, 1961 [the Income Tax Act], the petitioner states that it had six months from the end of the month in which the NCLT Chennai issued the order to file a modified return by giving effect to amalgamation. However, the Income Tax Business Application [ITBA] portal had not been operationalized to enable the filing of such modified return. 3. Meanwhile, the first respondent issued a notice under Section 143(2) of the Income Tax Act and further notices under Section 142(1) thereof. The petitioner replied thereto. In addition, the petitioner states that the modified return was fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turns filed by the petitioner and Cheran Synthetics (the transferor company) were examined while recording the conclusion with regard to difference in export sales. He also referred to the findings at Page Nos.420 and 421 with regard to the difference in purchases declared in the original return of income. On the basis of the above illustrations, learned counsel submits that the impugned assessment order is not sustainable and that the same is liable to be quashed. 7. In response to these contentions, learned senior standing counsel for the respondents submits that there is no infirmity in the impugned assessment order because sufficient opportunity was provided to the petitioner. By referring to the series of notices issued to the petitioner, including show cause notice dated 27.12.2022, learned counsel submits that the petitioner received and replied to each of these notices. With reference to the impugned assessment order, he submits that the consolidated financial statement was taken into consideration and that this is evident on examining Page No.676 of Volume II of the paper book, which draws reference to the profits and gains from business as per the schedule part B-T1 in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... siness reorganisation, whether or not the company was in existence prior to such business reorganisation.' 10. After amendment, the provision currently reads as under : ' [Effect of order of tribunal or court in respect of business reorganisation. 170A. (1) Notwithstanding anything to the contrary contained in Section 139, in a case of business reorganisation, where prior to the date of order of a High Court or tribunal or an Adjudicating Authority as defined in clause (1) of Section 5 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016) (hereinafter referred to as order in respect of business reorganisation), as the case may be, any return of income has been furnished by an entity to which such order applies under the provisions of section 139 for any assessment year relevant to the previous year to which such order applies, the successor shall furnish, within a period of six months from the end of the month in which the order was issued, a modified return in such form and manner, as may be prescribed, in accordance with and limited to the said order. (2) Where the assessment or reassessment proceedings for an assessment year relevant to a previous year to which the or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 2013, a scheme of reorganization becomes effective upon sanction from the appointed date. In effect, once the scheme was sanctioned on 18.04.2022, the scheme takes effect from 01.04.2020. Consequently, all the assets, contracts, rights and liability of the transferor shall stand vested with the transferee with effect from the said date. Therefore, Section 170A of the Income Tax Act enables the transferee or successor to file the modified return within a specified time limit. 12. Since the order of the NCLT Chennai was issued on 18.04.2022, the petitioner had six months from 30.04.2022 to file the modified return. The petitioner has placed on record an email dated 22.06.2022 which indicates that the option to file the modified return under Section 170A of the Income Tax Act had not been enabled in the portal. In those circumstances, it appears that the petitioner submitted a physical copy of such modified return on 24.08.2022. Since the last date for filing the return was expiring earlier, the petitioner previously submitted the return of the company on standalone basis on 14.03.2022. 13. From the list of dates and events, it is clear that the first notice to the petitioner un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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