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December 2024

Assessment — Amalgamation of Companies — Law applicable — Effect of insertion of section 170A with effect from 1st April, 2022 — Assessment to be on the basis of modified return filed by successor to business.

By Keshav Bhujle | Ritu Punjabi, Advocates
Reading Time 4 mins

60 Pallava Textiles Pvt. Ltd. vs. Assessment Unit

[2024] 467 ITR 539 (Mad.)

A.Y. 2021–22

Date of order: 30th January, 2024

S. 170A of ITA 1961

Assessment — Amalgamation of Companies — Law applicable — Effect of insertion of section 170A with effect from 1st April, 2022 — Assessment to be on the basis of modified return filed by successor to business.

The assessee was a private limited company engaged in the business of manufacturing and trading of yarn and fabric. During the financial year 2020–21, it filed an application before the National Company Law Tribunal, seeking approval for a scheme of amalgamation with a company C. Under the scheme of amalgamation, C merged with the assessee and dissolved without being wound up. The appointed date under the scheme was 1st April, 2020. The National Company Law Tribunal sanctioned the scheme on 18th April, 2022, and the scheme became effective from 1st April, 2020 upon such sanction. Since the last date for filing the return of income was in March 2022, the assessee was constrained to file the standalone return of inco

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