Is the amalgamating company required to file an Income Tax Return for the assessment year in which the amalgamation was approved, even though the consolidated accounts of both the amalgamated and amalgamating companies were duly filed by the amalgamated company and assessed under section 143(3)? | Can Notice under Sections 147/148/148A of the Income Tax Act, 1961 be issued for filing of ITR of amalgamating company? – Gloster Ltd. Vs. Deputy Commissioner of Income Tax, Circle 4 (1) Kolkata and Ors. – Calcutta High Court
Hon’ble High Court held that the AO could not have assumed jurisdiction under sections 147/148/148A of the Income Tax Act, 1961 on the ground that the amalgamating company was required to file a return of income for the assessment year 2018-19 and that income had escaped assessment because of the failure on the part of the amalgamating company to file such return. The amalgamating company stood dissolved on 30.03.2018 and was not required to and could not have filed any return for the assessment year 2018- 19. Accordingly, only the amalgamated company was required to file any return for the said assessment year which it duly filed upon amalgamation. In fact, the consolidated accounts of both the amalgamated company and the amalgamating company had been duly filed and was also assessed under section 143(3) of the Act. In such circumstances, the Assessing Officer had erroneously assumed jurisdiction under sections 147/148/148A on the allegation that income chargeable to tax had escaped assessment for the assessment year 2018-19 because the amalgamating company had not filed its return for the said assessment year.