Technoforce Solutions (I) Pvt. Ltd. Vs DCIT (Bombay High Court)
In Technoforce Solutions (I) Pvt. Ltd. Vs DCIT, the Bombay High Court examined the legality of notices issued under Sections 143(2) and 142(1) of the Income-tax Act, 1961, in the context of a modified return filed under Section 170A following an amalgamation. The petitioner had originally filed its return for Assessment Year (AY) 2023–24, which was processed under Section 143(1) without adjustments. Subsequently, pursuant to an amalgamation order passed by the NCLT on 05.07.2024, the petitioner filed a modified return on 23.01.2025 under Section 170A, reflecting revised income.
The petitioner contended that the assessment for AY 2023–24 had already been completed and was not pending on the date of filing the modified return. Therefore, under Section 170A(2)(a), the Assessing Officer (AO) was required only to modify the earlier assessed income to give effect to the amalgamation order and the modified return. However, the AO issued a notice under Section 143(2) on 23.06.2025 and another under Section 142(1) on 21.01.2026, seeking to scrutinize the return and call for additional information beyond the scope of the reorganisation.
The Court analysed Section 170A, which distinguishes between two situations: where assessment is completed (clause (a)) and where it is pending (clause (b)) on the date of filing the modified return. It held that in cases falling under clause (a), the AO is only empowered to pass an order modifying the total income in line with the reorganisation and the modified return. There is no scope for initiating a fresh or de novo assessment by issuing notices under Sections 143(2) or 142(1).
