Timeline for filing of modified returns in Form ITR-A u/s 170A extended

Timeline for filing of modified returns in Form ITR-A u/s 170A extended till 31st March 2023

CBDT has issued Order vide F. No. 370142/41/2022-TPL dated September 26, 2022 extends the timeline for filing of modified Income Tax Return (“ITR”) in Form ITR-A by a successor company under section 170A of the Income tax Act, 1961 (“the IT Act”) from September 30, 2022 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 effect of order of tribunal or court in respect of business reorganisation 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 reorganisation 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 reorganisation was issued by the competent authority.

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. This order shall come into force with immediate effect.

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