Merger – Filing of ITRs and Section 170A Compliance

[Ramanathan Seshan]

Dear Experts,

Company B Pvt. Ltd. has been merged into Company A Pvt. Ltd. with the following details:

• Appointed Date: 01/04/2023

• NCLT Order Date: 20/11/2024

• Effective Date (as per NCLT Order): 01/01/2025

• Company B continued to operate independently up to 31/12/2024.

Additional info: Company B is a profit-making entity with no carry forward of losses.

Based on this, I have a few questions regarding income tax return (ITR) filing and compliance under Section 170A:

1. Does Company A need to file a separate ITR for FY 2024–25?

2. Does Company B need to file a separate ITR for FY 2024–25?

3. For which financial years is Company A required to file a modified return under Section 170A?

4. If Company A is not required to file a separate ITR for FY 2024–25, would filing a return under Section 170A alone be sufficient?

5. Given that Company B is profit-making and has no carry forward of losses, does that change the ITR filing requirements in any way?

Regards,

S Ram

AI Summary

Section 170A modified return required; successor must file modified return to subsume predecessor's return for affected assessment years.
The successor company must file a modified return under Section 170A within the prescribed six month period following the adjudicatory order, reflecting the appointed date to subsume the predecessor's originally filed return. When the predecessor ceases to exist partway through a financial year, the predecessor does not file a separate return for that year; the successor files a single return for the year including the predecessor's income for the period up to cessation. Absence of carry forward losses does not change these obligations.