Bajaj Electricals Ltd. v. ACIT: Initiating fresh scrutiny notice on modified return filed during pending assessment after assessment completion is impermissible.

37. Bajaj Electricals Ltd. v. ACIT: (2026) 489 ITR 682 (Bom): 2026 SCC OnLine Bom 3813:'

A. Y. 2023-24: Date of order 09/02/2026:

Ss. 142(1), 143 and 170A of ITA 1961

Business reorganisation — Modified return of income u/s. 170A — Assessment proceedings to be carried out in respect of modified return filed by successor :— (A) Two scenarios — One where assessment order passed before filing of modified return filed by successor — Other where assessment proceedings pending at time of filing of modified return — AO to pass separate order on modified return only in cases where assessment stands completed on date of furnishing of modified return; (B) Assessee’s revised return filed pursuant to scheme of demerger taken for scrutiny — During pendency of assessment proceedings assessee filing modified return pursuant to amalgamation with another company — AO is under obligation to assess total income of assessment year in accordance with order of business reorganisation and taking into account modified return — Assessment order passed in accordance with provisions examining aspects arising from amalgamation — Issuance of notice thereafter with a view to scrutinise modified return again is contrary to express provisions — Notices liable to be quashed.Read More