Merger - Return u/s 170A - Assistance in filing Returns

[Vivek]

Dear All,

Company A (Transferee) and Company B (Transferor) are merged effective 01-10-2022 as per NCLT order.

Now I am filing modified return of Company A for AY 23-24 by taking figures of Company from 01-10-22 till 31-03-2023.

Now Company B has balance in MAT credit and advance tax payments. How to carry forward these in the modified ITR. Please guide on specific fields where we can enter this information in the ITR.

Further, company has huge profits from period 01-04-22 till 30-09-22 and post this period there is loss, whereas huge advance tax payments are made in the Q3 & Q4 (i.e after cut off date), so how to account these in modified return.

AI Summary

Successor liability for advance tax ensures transferee claims predecessor's tax credits after merger, with income split at effective date.
Successor company must claim advance tax paid by the transferor as its own and may carry forward the transferor's MAT credit subject to conditions. Income and losses are to be bifurcated strictly up to the effective date of succession regardless of payment dates. The modified return should disclose these adjustments in Schedule IT, Schedule MATC and Part A-General, with supporting documentation including the certified NCLT order, split computations, MAT workings, advance tax challans and recommended auditor certificate. If the transferor has already filed, revise its return and expect administrative rectification for any refund mismatches.