CBDT vide Notification No. 110/2022 dated 19.09.2022 in G.S.R 709(E) through Income-tax (31st Amendment) Rules, 2022 notified and inserted new Rule 12AD in the Income-tax Rules, 1962 (‘Rules’) and also notified modified return of income Form ITR-A to be furnished by a successor entity to a business reorganisation, as referred to in section 170A of the Act for an assessment year.
The new Rule 12AD shall come into force from 1st November 2022.
Under section 170A, the Successor entity has been given the opportunity to furnish a modified return of income within a period of six months from the end of the month in which the reorganization order is issued by any Court.
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.
Modified ITR Form in ITR-A is notified by the Board by exercising the powers conferred by section 170A of the Act.
Rule 12AD provides for the followings-
1. It provides for furnishing modified return of income as per the provisions of section 170A of the Act.
2. The modified return of income to be furnished by a successor entity to a business reorganisation, as referred to in section 170A, for an assessment year, shall be in Form ITR-A and verified in the manner specified therein.
3. The modified return of income in ITR-A shall be furnished electronically under digital signature.
4. If the assessment or reassessment proceedings for an assessment year relevant to a previous year to which the order of the business reorganisation applies have been completed or are pending on the date of furnishing of the modified return in accordance with the provisions of section 170A, the Assessing Officer shall, pass an order modifying the total income of the relevant assessment year determined in such assessment or reassessment, or proceed to complete the assessment or reassessment proceedings, as the case may be, in accordance with the order of the business reorganisation and the modified return so furnished.
5. The Pr.DGIT (Systems) or DGIT (Systems) shall specify the procedures, formats and standards for furnishing the ITR-A.
6. The existing ITR-6 (applicable for Companies) has been modified to include information related to the filing of return u/s ‘170A - After order by the tribunal or court’ in the ‘Part A-GEN’ for entries of serial number (A19)(a)(i).
7. A new Form ITR-A (ITR under section 170A) is notified.
The new ITR Form in ITR-A requires providing information about PAN and others for both the predecessor and all the successor companies. Further, it also requires giving information of filing of return filed previously including acknowledgement number and date of filing, if any, under the provisions of section 139 or others of the predecessor company. Details of the Order including the date from which the business reorganisation has been made effective under which the reorganization took place are also required to be provided.
Read the full text of CBDT Notification No. 110/2022 dated 19.09.2022 on Furnishing of modified return in ITR-A by a successor company
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 19th September, 2022
G.S.R 709(E).—In exercise of the powers conferred by section 170A read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend Income-tax Rules, 1962, namely:–
1. Short title and commencement.—(1) These rules may be called the Income-tax (31st Amendment) Rules, 2022. (2) They shall come into force from the 1st day of November, 2022.
2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), after rule 12AC, the following rule shall be inserted, namely:––
‘12AD. Return of income under section 170A.— (1) The modified return of income to be furnished by a successor entity to a business reorganisation, as referred to in section 170A, for an assessment year, shall be in the Form ITR-A and verified in the manner specified therein.
(2) The return of income referred to in sub-rule (1) shall be furnished electronically under digital signature.
(3) If the assessment or reassessment proceedings for an assessment year relevant to a previous year to which the order of the business reorganisation applies have been completed or are pending on the date of furnishing of the modified return in accordance with the provisions of section 170A, the Assessing Officer shall, pass an order modifying the total income of the relevant assessment year determined in such assessment or reassessment, or proceed to complete the assessment or reassessment proceedings, as the case may be, in accordance with the order of the business reorganisation and the modified return so furnished.
(4) The Principal Director-General of Income-tax (Systems) or Director-General of Income-tax (Systems) shall specify the procedures, formats and standards for ensuring secure capture and transmission of data and shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to furnishing the return in the manner specified in sub-rule (2).’.
3. In the principal rules, in Appendix-II,––
(I) in Form ITR-6, for every assessment year commencing on the 1st day of April, 2022 or any earlier assessment year, in the Part A-GEN, for entries of serial number (A19)(a)(i), the following shall be substituted, namely:—
(II) after the ITR – Ack, the following Form ITR-A (ITR under section 170A) shall be inserted, namely:–
……
……
VERIFICATION
I, son/ daughter of solemnly declare that to the best of my knowledge and belief, the information given in the return is correct and complete and is in accordance with the provisions of the Income-tax Act, 1961. I further declare that I am making this return in my capacity as ___________(drop down to be provided) and I am also competent to make this return and verify it. I am holding permanent account number (Please see instruction).
I further declare that the terms and conditions specified in the order of business reorganisation passed by the Competent Authority have been complied with.
Date: Signature:.
[Notification No. 110/2022/F.No. 370142/41/2022-TPL]
SHEFALI SINGH, Under Secy.
Note:- The principal rules were published vide notification S.O. 969(E), dated the 26th March, 1962 and last amended vide notification G.S.R. 697.(E), dated 14th September, 2022.
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