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

For section 314 of the Income-tax Act, 2025, which of the following is an 'order in respect of business reorganisation'?

An order of an Adjudicating Authority under the Insolvency and Bankruptcy Code, 2016 qualifies. Section 314(4)(b) defines the term as an order of a High Court, tribunal or such Adjudicating Authority, so internal resolutions, assessment orders or Registrar notices do not qualify.

  1. AAn order of an Adjudicating Authority as defined in section 5(1) of the Insolvency and Bankruptcy Code, 2016Correct
  2. BA resolution of the board of directors approving a merger
  3. CAn order of the Assessing Officer determining total income
  4. DA notice of the Registrar of Companies proposing a merger

Explanation

Section 314(4)(b) defines the term as an order of a High Court or tribunal or an Adjudicating Authority as defined in section 5(1) of the Insolvency and Bankruptcy Code, 2016. A board resolution, Assessing Officer's order or Registrar's notice is not such an order.

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