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CBDT notifies the Income-tax (31st Amendment) Rules, 2022, to insert new IT Rule 12AD/ Form ITR-A regarding filing of Return of Income by a Successor Entity u/s 170A w.e.f. 01/11/2022 and to amend Form ITR-6 w.e.f. 01/04/2022, vide Notification 110/2022 dt. 19/09/2022.

New Income Tax Return Form ITR-A has been introduced for 'successor entities' to furnish their modified return of income u/s 170A of the Income Tax Act, 1961 consequent to a business reorganisation.

CBDT notified form ITR-A for filing of modified return by successor entity

CBDT Income Tax Notification 110/2022 dt. 19/09/2022: New IT Rule 12AD/ Form ITR-A for Return u/s 170A, Amendment in Form ITR-6

G.S.R 709(E).- In exercise of the powers conferred by section 170A read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend Income-tax Rules, 1962, namely:–

1. Short title and commencement.- (1) These rules may be called the Income-tax (31st Amendment) Rules, 2022.

(2) They shall come into force from 01/11/2022.

2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), after rule 12AC, the following rule shall be inserted, namely:–

[New IT Rule] 12AD: Return of income under section 170A

(1) The modified return of income to be furnished by a successor entity to a business reorganisation, as referred to in section 170A, for an assessment year, shall be in the Form ITR-A and verified in the manner specified therein.

(2) The return of income referred to in sub-rule (1) shall be furnished electronically under digital signature.

(3) If the assessment or reassessment proceedings for an assessment year relevant to a previous year to which the order of the business reorganisation applies have been completed or are pending on the date of furnishing of the modified return in accordance with the provisions of section 170A, the Assessing Officer shall, pass an order modifying the total income of the relevant assessment year determined in such assessment or reassessment, or proceed to complete the assessment or reassessment proceedings, as the case may be, in accordance with the order of the business reorganisation and the modified return so furnished.

(4) The Principal Director-General of Income-tax (Systems) or Director-General of Income-tax (Systems) shall specify the procedures, formats and standards for ensuring secure capture and transmission of data and shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to furnishing the return in the manner specified in sub-rule (2).

3. In the principal rules, in Appendix-II,–

(I) in Form ITR-6, for every assessment year commencing on 01/04/2022 or any earlier assessment year, in the Part A-GEN, for entries of serial number (A19)(a)(i), the following shall be substituted, namely:- (Please refer above attachment for details)

(II) after the ITR – Ack, the following Form ITR-A (ITR under section 170A) shall be inserted, namely:–

[New Income Tax Return Form ITR-A u/s 170A for successor entities:]

Form ITR-A*

(For successor entities to furnish return of income under section 170A consequent to business  reorganisation)
(Please see rule 12AD of the Income-tax Rules, 1962)

* Please refer above attachment for detailed format of Form ITR-A.

Note:- The principal rules were published vide notification S.O. 969(E), dated 26/03/1962 and last amended vide notification G.S.R. 697.(E), dated 14/09/2022.

Section 170A of Income Tax Act, 1961: Effect of order of tribunal or court in respect of business reorganisation
Text of IT Section 170A inserted by the Finance Act 2022 w.e.f. 01/04/2022, is as under:

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 (31 of 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 demerger 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.

Click here to view the official notification

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