No Separate ITR Filing needed by Successor Companies for Business Reorganization ensued between between 2016 & 2022 : CBDT

CBDT issued an Order dated March 13, 2024, under section 119 of the Income-tax Act, 1961, providing relief to successor companies involved in business reorganisations sanctioned by competent authorities between June 1, 2016, and April 1, 2022. This relief is extended to entities seeking approval to furnish income tax returns following schemes of amalgamation/merger/demerger.

It is clarified that successor companies are no longer required to file a separate application under Section 119(2)(b) of the Income Tax Act with the Board. This applied to cases where the order for business reorganization by the competent authority was issued after June 1, 2016, but before April 1, 2022. Entities are allowed to file modified returns limited to the scheme sanctioned by the competent authority prior to April 01, 2022, using the functionality on the e-filing portal “u/s 119(2)(b) after condonation of delay/Court Order or Sanction Order of Business reorganisation of the Competent authority issued prior to April 01, 2022”.

Taxpayers must first communicate with the Jurisdictional Assessing Officer (JAO) for enablement of electronic filing within a specified timeline as follows: Step Action Time-Line First Communication by the taxpayer to the Jurisdictional Assessing Officer (JAO) as per the proforma, for enablement of electronic filing of the return. (A)   Up to April 30, 2024.   Second Completion of verification by the JAO as to whether the return is resulting from and limited to the order of the competent authority & enablement through ITBA,   information about which will be received by the taxpayer on its e-filing portal. Preferably, within 30 days of the receipt of (A). Third Electronic filing of the return for relevant assessment year(s) on the e-filing portal by the taxpayer.             Up to June 30, 2024.

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