CBDT has issued an Order under section 119 of the Income-tax Act, 1961 (‘Act’) on 26.09.2022 extending the time limit for filing of modified return of income in ITR-A under section 170A of the Act to 31.03.2023 where the order of business reorganisation of the competent authority was issued in the period between 1st April, 2022 and 30th September, 2022.
Finance Act, 2022 has inserted a new section 170A to provide that in 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, as the case may be, any return of income has been furnished by the successor under the provisions of section 139 for any assessment year relevant to the previous year to which such order applies, such successor shall furnish, within a period of six months from the end of the month in which the said order was issued, a modified return in such form and manner, as may be prescribed, in accordance with and limited to the said order.
For this purpose, the Board has notified Rule 12AD which shall come into force from 1st November 2022 vide Notification No. 110/2022 dated 19.09.2022 in G.S.R 709(E) through Income-tax (31st Amendment) Rules, 2022.
As per section 170A of the Act, where a competent authority issues any order of business reorganisation then the successor business entity is required to furnish a modified return of income within a period of 6 months from the end of the month in which such order of business reorganization is issued.
As per the Notification dated 19.09.2022, ITR form in ITR-A is notified for this purpose. This has reduced the time available to furnish the modified return in ITR-A for successor companies in cases where the order of business reorganisation of the competent authority was issued in the period between 1st April, 2022 and 30th September, 2022.
The Order says this has resulted in genuine hardships and provided inadequate time to the successor companies in furnishing the modified return of income under section 170A. Hence, in order to provide relief to such successor companies/business entities, the Board has decided to extend the due date to furnish the modified return of income in ITR-A under section 170A to 31st March, 2023 in all the cases where the order of business reorganisation of the competent authority was issued in the period between 1st April, 2022 and 30th September, 2022.
This is a one-time measurement and the extension is granted for the delay in notifying the forms required for furnishing the modified return.
Read the full text of the CBDT Order (inclu. Corrigendum) under section 119 dated 26.09.202 on Extension of time limit for furnishing modified return in ITR-A
F No. 370142/41/2022-TPL
Government of India
Ministry of Finance
Department of Revenue
(Central Board of Direct Taxes
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New Delhi, 26th September, 2022
Subject: Order under section 119 of the Income-tax Act, 1961- reg.
The Finance Act, 2022 has inserted section 170A in the Income tax Act, 1961 ("the Act") with effect from 1st April, 2022 relating to effect of order of tribunal or court in respect of business reorganisation which provides that the entities going through such business reorganization, may furnish modified return of income for any assessment year to which such order of business reorganisation is applicable. The section further provides that such modified returns shall be furnished within a period of six months from the end of the month in which such order of business reorganisation was issued by the competent authority.
2. In pursuance thereof, form ITR-A has been notified vide notification G.S.R. 709(E) dated 19th September, 2022 and comes into effect from the 1st day of November, 2022. This has, however, reduced the time available for furnishing modified returns for successor companies in cases where the order of business reorganisation of the competent authority was issued in the period between 1st April, 2022 and 30th September, 2022.
3. Therefore, in order to address this genuine hardship hereby, allows that for successor companies in cases where the order of business reorganisation of the competent authority was issued between the period 1st April, 2022 and 30th September, 2023, the time available to furnish modified returns under section 170A of the Act shall stand extended to 31st March, 2023
4. This order shall come into force with immediate effect.
5. The Hindi version of this order shall follow
Shefali Singh
Under Secretary to the Government of India
F.NO. 370142/41/2022-TPL
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
(CENTRAL BOARD OF DIRECT TAXES)
(TAX POLICY AND LEGISLATION DIVISION)
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New Delhi, 27th September, 2022
CORRIGENDUM
In the order under section 119 of the Income-tax Act, 1961, F.No. 370142/41/2022-TPL dated 26th September, 2022 issued by the Central Board of Direct Taxes, in paragraph 3 "30th September, 2023" shall be read as "30th September, 2022".
[Shefali Singh]
Under Secretary, TPL-IV
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