Case Law Details
TSI Business Parks Hyderabad Pvt Ltd Vs DCIT (Telangana High Court)
In Dalmia Power Limited v. ACIT (2019) 112 Taxmann. com 252 (SC), the issue before the Supreme Court was whether the Income Tax Department ought to have permitted the assessee companies to file the revised income tax return for the assessment year 2016-2017 after expiry of the due date prescribed under Section 139(5) of the Act on account of pendency of proceedings for amalgamation of the assessee companies with other companies under Sections 230 to 232 of the Companies Act, 2013.
We may mention that in the aforesaid case, the scheme of amalgamation was approved and sanctioned by the NCLT after the due date of filing the revised return for the assessment year 2016-2017. Supreme Court referred to the provisions of Section 139(5) of the Act and opined that the said provision would not be applicable in a case where revised return could not be filed on account of the time taken to grant sanction to the scheme of amalgamation by NCLT. Section 139(5) of the Act deals with filing of revised return within a period of one year upon discovery of an omission or wrong statement made in the initial return of income. Supreme Court also referred to Section 170 of the Act and held that it is incumbent upon the Income Tax Department to assess the total income of the successor company in respect of the previous assessment year after the date of succession. Income Tax Department is required to assess the income of the successor company after taking into account the revised return filed after amalgamation of the company. In the facts and circumstances of that case, Supreme Court directed the Income Tax Department to receive the revised return of income for the assessment year 2016-2017 filed by the appellants therein and to complete the assessment for the said assessment year after taking into account the scheme of amalgamation as sanctioned by the NCLT.
Upon thorough consideration, we are of the view that the decision of the Supreme Court in Dalmia Power Limited (supra) is squarely applicable to the facts of the present case. It is because of circumstances beyond the control of the petitioner that the revised return could not be filed before the due date. However, under Section 170 of the Act, Income Tax Department is obligated to assess the total income of the assessee of the previous assessment year post-amalgamation.
That being the position, we set aside the order of respondent No.1 dated 11.01.2023 and direct him to take on board, the revised return of income filed by the petitioner for the assessment year 2021-2022 on 23.12.2022 and thereafter to process the same in accordance with law.
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