As per New Section 170A of Income Tax Act introduced by Finance Minister in Budget 2023 for Financial Year 2023-24 (Assessment Year 2024-25)
Effect of order of tribunal or court in respect of business reorganisation.
( 1 ) Notwithstanding anything to the contrary contained in section 139, in a case of business reorganisation, where prior to the date of order of a High Court or tribunal or an Adjudicating Authority as defined in clause ( 1 ) of section 5 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as order in respect of business reorganisation), as the case may be, any return of income has been furnished by an entity to which such order applies under the provisions of section 139 for any assessment year relevant to the previous year to which such order applies, the successor shall furnish, within a period of six months from the end of the month in which the order was issued, a modified return in such form and manner, as may be prescribed, in accordance with and limited to the said order.
( 2 ) Where the assessment or reassessment proceedings for an assessment year relevant to a previous year to which the order in respect of the business reorganisation applies,-
( a ) have been completed on the date of furnishing of the modified return in accordance with the provisions of sub-section ( 1 ), the Assessing Officer shall pass an order modifying the total income of the relevant assessment year determined in such assessment or reassessment, in accordance with such order and taking into account the modified return so furnished;
( b ) are pending on the date of furnishing of the modified return in accordance with the provisions of sub-
section ( 1 ), the Assessing Officer shall pass an order assessing or reassessing the total income of the relevant assessment year in accordance with the order of the business reorganisation and taking into account the modified return so furnished.
( 3 ) Save as otherwise provided in this section, in an assessment or reassessment made in respect of an assessment year under this section, all other provisions of this Act shall apply and the tax shall be chargeable at the rate or rates as applicable to such assessment year.
Explanation . - In this section, the expressions -
( i ) “business reorganisation” means the reorganisation of business involving the amalgamation or demerger or merger of business of one or more persons;
( ii ) “successor” means all resulting companies in a business reorganisation, whether or not the company was in existence prior to such business reorganisation.’.