Indus Valley Partners (India) Private Limited Vs DCIT (ITAT Mumbai)
Summary: The appeal concerned Assessment Year 2021-22 and arose from the final assessment order dated 22.10.2024 passed under section 143(3) read with sections 144C(13) and 144B of the Income-tax Act, 1961, following the Dispute Resolution Panel’s directions dated 30.09.2024. The Transfer Pricing Officer had passed an order under section 92CA(3) dated 28.10.2023. The assessee was engaged in software development, sale of software licences and related IT services and had merged with Indus Infotech Private Limited with effect from 01.10.2020 pursuant to the NCLT order dated 18.10.2022.
The first issue concerned the assessee’s modified return under section 170A filed on 30.04.2023 after the NCLT-approved merger. The original return had declared total income of Rs. 29,12,86,816/- and book profit of Rs. 54,37,16,690/-, whereas the modified return for the period 01.04.2020 to 30.09.2020 declared income of Rs. 8,62,98,740/- and MAT book profit of Rs. 11,33,68,895/-. The Tribunal held that a valid modified return filed pursuant to a business reorganisation order had to be considered in accordance with section 170A. It therefore restored the issue to the Assessing Officer to verify whether the modified return was validly filed within the prescribed period and was confined to the effect of the NCLT-approved merger. If so, the AO was directed to recompute income using the modified returned income, subject to transfer pricing and other adjustments surviving the order. Ground No. 1 was allowed for statistical purposes.
