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 vide (Notification No. 110/2022/F.No. 370142/41/2022-TPL)

1. Applicability of Form ITR A- This modified return shall 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.


(i) “business reorganisation” means the reorganisation of business involving the amalgamation or demerger or merger of business of one or more persons;

Example- Demerger of plantation business of Tata Coffee Limited (TCL) into TCPL Beverages & Foods Limited (TBFL)

(ii) “successor” means all resulting companies in a business reorganisation, whether or not the company was in existence prior to such business reorganisation.

Successor- TCPL Beverages & Foods Limited (TBFL)

Predecessor-Tata Coffee Limited (TCL)

2. Sec 170A-

As per this Section, in the case of business organization 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 , (here Adjudicating Authority means National Company Law Tribunal constituted under section 408 of the Companies Act, 2013;)

as the case may be, any return of income has been furnished by the successor under the provisions of Sec 139 of the Income Tax Act 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 (Form ITR A), as may be prescribed, in accordance with and limited to the said order.

The provisions of this Section will apply notwithstanding anything to the contrary contained in Section 139 of the Income Tax Act, in a case of business reorganization.

3. Insertion of New Rule 12AD in the Income Tax Rules, 1962

(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).’.

Applicability- They shall come into force from the 1st day of November, 2022.

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)Filed u/s 139(1) – On or before due date,  139(4) – After due date, 139(5) – Revised return,   92CD – Modified return, 119(2)(b) – After condonation of delay, 170A – After order by the tribunal or court.”;

(II) after the ITR – Ack, the following Form ITR-A (ITR under section 170A) shall be inserted, namely:–




[For successor entities to furnish return of income under section 170A consequent to business reorganisation] (Refer instructions for eligibility) (Please see rule 12AD of the Income-tax Rules, 1962)


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Qualification: CA in Practice
Location: LUCKNOW, Uttar Pradesh, India
Member Since: 26 Apr 2020 | Total Posts: 40
Practising chartered accountant with the name of the firm M/s Geetanjali Pandey & Co. since 2018. I am also a Registered Valuer for valuation of Securities and Financial assets. View Full Profile

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February 2024