Section 170A of Income Tax Act for AY 2023-24

Provisions and rules related to section 170A of Income Tax Act. Effect of order of tribunal of court in respect of business reorganisation.

Amended and updated notes on section 170 of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to effect of order of tribunal of court in respect of business reorganisation.

Chapter XV (Sections 159 to 180A) of the Income Tax Act 1961 deals with the provisions related to liability in special cases. Section 170 of IT Act 1961 provides for effect of order of tribunal of court in respect of business reorganisation.

Recently, we have discussed in detail section 170 (Succession to business otherwise than on death) of IT Act 1961.

Today, we learn the provisions of section 170A of Income-tax Act 1961 as amended by the Finance Act 2022. The amended provision of section 170A is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 170A of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.

Section-170A: Effect of order of tribunal of court in respect of business reorganisation

[Section 170A newly inserted w.e.f. 1-April-2022 by the Finance Act 2022]

Notwithstanding anything to the contrary contained in section 139, in a case of business reorganisation, where prior to the date of order of a High Court or tribunal or an Adjudicating Authority as defined in clause (1) of section 5 of the Insolvency and Bankruptcy Code, 2016, as the case may be, any return of income has been furnished by the successor under the provisions of section 139 for any assessment year relevant to the previous year to which such order applies, such successor shall furnish, within a period of six months from the end of the month in which the said order was issued, a modified return in such form and manner, as may be prescribed, in accordance with and limited to the said order.

Explanation: In this section, the expressions—

  • (i) “business reorganisation” means the reorganisation of business involving the amalgamation or de-merger or merger of business of one or more persons;
  • (ii) “successor” means all resulting companies in a business reorganisation, whether or not the company was in existence prior to such business reorganisation.


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