CMA Final · Direct Tax Laws and International Taxation · Assessment of Companies
Under the Income-tax Act, 2025, a High Court order sanctioning a merger was issued on 18 August 2026. The successor company had already filed returns for the tax year to which the order applies. By what date must the successor furnish the modified return?
The modified return is due by 28 February 2027. The period under section 314 is six months from the end of the month in which the order was issued. The August 2026 order means the month ends 31 August 2026, and six months from then is 28 February 2027.
- A31 January 2027
- B18 February 2027
- C28 February 2027Correct
- D31 March 2027
Explanation
Section 314(1) gives six months from the end of the month in which the order was issued. The order was issued in August 2026, so the month ends on 31 August 2026. Six months from that date is 28 February 2027. Counting from 18 August would give 18 February 2027, which is wrong.
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