Bajaj Electricals Limited Vs ACIT (Bombay High Court)
The case concerns a writ petition challenging notices issued under Sections 143(2) and 142(1) of the Income Tax Act, 1961 for Assessment Year 2023–24, on the ground that they were without jurisdiction in light of Section 170A dealing with business reorganisation. The petitioner, a public listed company, had initially filed its return of income on 31.10.2023. Following a demerger approved by the NCLT on 08.06.2023, it filed a revised return on 30.12.2023. Subsequently, pursuant to an amalgamation approved by the NCLT on 01.03.2024, it filed a modified return on 16.09.2024 in accordance with Section 170A.
At the time of filing the modified return, assessment proceedings were already pending, having been initiated through notice under Section 143(2) dated 19.06.2024. Under Section 170A(2)(b), where assessment proceedings are pending on the date of furnishing a modified return, the Assessing Officer is required to complete the assessment in accordance with the business reorganisation and the modified return. The petitioner informed the authorities of the modified return and participated in the assessment proceedings, providing detailed explanations and documentation regarding changes in income, losses, depreciation, and financial statements due to amalgamation.
An assessment order was passed on 26.03.2025, taking into account the amalgamation and related adjustments. However, an error was noted in adopting the income figure from the revised return instead of the modified return, for which rectification proceedings and an appeal were initiated separately. Subsequently, fresh notices dated 24.06.2025 and 14.11.2025 were issued to assess the modified return again, prompting the present writ petition.
