Grace Infrastructure Private Limited Vs PCIT-3 (Madras High Court)
The petitioner challenged an order dated 30.03.2025 passed under Section 263 of the Income-tax Act, 1961, revising the assessment order dated 30.09.2022 for Assessment Year 2020-21. The petitioner company, engaged in wind power generation and manufacture of nuts and bolts, underwent a demerger under Sections 230 to 232 of the Companies Act, 2013 pursuant to an NCLT order dated 04.03.2021, with effect from 01.04.2019. Following the demerger, the Nut Division was transferred to Fastenex Private Limited. The petitioner filed a revised return of income on 31.03.2021 after the NCLT order, although the due date for filing the revised return had expired on 15.02.2021.
During assessment proceedings, the Assessing Officer sought details regarding the demerger, assets, liabilities, depreciation, deductions, refund claim, GST returns, purchases, imports and stock. The petitioner furnished replies and supporting documents. However, the Court noted that the information furnished after the NCLT order was not based on a revised audited balance sheet and profit and loss account prepared after the demerger. Instead, reliance was placed on the balance sheet as on 31.03.2020 signed on 21.12.2020, prior to the demerger order. The Court observed that such balance sheet could not form the basis of the revised return or the assessment completed under Section 143(3).
