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CMA Final · Direct Tax Laws and International Taxation · Assessment of Companies

A High Court sanctions an amalgamation order on 12 March 2027 affecting a tax year for which Kaveri Ltd's predecessor had already filed a return. Under section 314 of the Income-tax Act, 2025, by which date must the successor furnish the modified return?

The successor must file the modified return by 30 September 2027. Section 314(1) allows six months from the end of the month in which the order was issued, and the order was issued in March 2027, so the period runs from 31 March 2027.

  1. A30 September 2027, six months from the end of March 2027Correct
  2. B12 September 2027, six months from the date of order
  3. C30 June 2027, three months from the end of March 2027
  4. D31 March 2028, twelve months from the end of the tax year

Explanation

Section 314(1) gives six months from the end of the month in which the order was issued. The order is in March 2027, so the month ends 31 March 2027 and six months later is 30 September 2027. Counting from the date of order gives the wrong 12 September.

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