Court directs acceptance of revised tax return post-amalgamation, emphasizing obligation to consider revised returns.

The Court allowed the writ petition, setting aside the rejection of the petitioner's revised income tax return filed post-amalgamation. Relying on the precedent in Dalmia Power Limited, the Court directed the acceptance and processing of the revised return for the assessment year 2021-2022, emphasizing the obligation of the Income Tax Department to consider revised returns in cases of amalgamation. The decision highlighted the importance of assessing the total income of the successor company after such corporate restructuring, ultimately ruling in favor of the petitioner.

---

---

Issues involved:
The issues involved in this case are related to the filing of a revised return of income for the assessment year 2021-2022 following an amalgamation of two companies, the applicability of Section 170A of the Income Tax Act, 1961, and the authority of the Income Tax Department to accept and process the revised return.

Filing of Revised Return Post-Amalgamation:
The petitioner sought direction to the respondents to accept the revised return filed after the amalgamation of two companies, as approved by the National Company Law Tribunal (NCLT) on 26.04.2021. The petitioner relied on the decision in Dalmia Power Limited v. Assistant Commissioner of Income Tax, emphasizing the need to revise accounts post-amalgamation.

Rejection of Revised Return by Respondent:
Respondent No.1 rejected the manual return of income filed by the petitioner, citing that it was beyond the due date for filing the revised return. The respondent stated that without an order of condonation of delay, the return could not be considered, leading to the petitioner filing a writ petition challenging this decision.

Applicability of Section 170A and Notification:
During the proceedings, the Senior Standing Counsel presented Section 170A of the Income Tax Act, 1961, inserted by the Finance Act, 2022, effective from 01.04.2022, along with a notification dated 19.09.2022 by the CBDT. However, as the assessment year in question was 2021-2022, these provisions were deemed inapplicable to the case.

Relevance of Dalmia Power Limited Case:
The judgment referred to the Supreme Court decision in Dalmia Power Limited, which addressed the filing of revised returns post-amalgamation. The Court highlighted the obligation of the Income Tax Department to assess the total income of the successor company after amalgamation, emphasizing the need to consider revised returns in such cases.

Court Decision and Order:
After thorough consideration, the Court found the Supreme Court decision in Dalmia Power Limited directly applicable to the present case. The Court set aside the order of respondent No.1 and directed the acceptance and processing of the petitioner's revised return of income for the assessment year 2021-2022 filed on 23.12.2022, in accordance with the law. Consequently, the writ petition was allowed without costs, and any pending miscellaneous petitions were closed.

---