CBDT extends deadline for filing of modified Income Tax Return in Form ITR-A by a Successor Company [Read Circular]

The Central Board of Direct Taxes ( CBDT ) has extended the deadline for filing modified Income Tax Returns in Form ITR-A by a successor company u/s 170A of the Income Tax Act from September 30th to March 31, 2023.

The Finance Act, 2022 has inserted section 170A in the Income Tax Act, 1961 (“the Act”) with effect from April 01, 2022, relating to the effect of the order of tribunal or court in respect of business reorganization which provides that the entities going through such business reorganization, may furnish modified return of income for any assessment year to which such order of business reorganization is applicable. The section further provides that such modified returns shall be furnished within a period of six months from the end of the month in which such order of business reorganization was issued by the competent authority.

A Circular issued by CBDT said that, “In pursuance thereof, form ITR-A has been notified vide notification G.S.R. 709(E) dated September 19, 2022, and comes into effect from November 01, 2022. This has, however, reduced the time available for furnishing modified returns for successor companies in cases where the order of business reorganisation of the competent authority was issued in the period between April 01, 2022, and September 30, 2022”.

“Therefore, in order to address this genuine hardship and provide adequate time for furnishing of return under section 170A of the Act, the Board hereby allows that for successor companies in cases where the order of business reorganisation of the competent authority was issued between the period April 01, 2022, and September 30, 2023, the time available to furnish modified returns under section 170A of the Act shall stand extended to March 31, 2023”, the CBDT also added.

To Read the full text of the Circular CLICK HERE

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