In Dalmia Power Ltd. v. ACIT[1], SC has permitted filing of revised returns of income beyond the prescribed time allowed under the IT Act. In this case, the relevant schemes of arrangement incorporated provisions for filing the revised returns beyond the prescribed time limit since the schemes were to come into force retrospectively from the appointed date. These schemes had been sanctioned by the NCLT and had not been objected to by the Income Tax Department (‘Revenue’). On these facts, SC noted that it was impossible for the companies to have filed the revised returns of income before the applicable due date since the NCLT had passed the last orders granting approval and sanction of the schemes only after such due date. Further, since the predecessor companies/transferor companies had been succeeded by the transferee companies who had taken over their business along with all assets, liabilities, profits and losses etc., it was incumbent upon the Revenue to assess the total income of the successor in respect of the previous assessment year after the date of succession. Accordingly, SC had directed the Revenue to assess the income of the transferee companies after taking into account the revised returns filed after amalgamation of the companies.

[1] [2019] 112 taxmann.com 252 (SC)