In Brief
Two cement and power companies (Dalmia Power Limited and Dalmia Cement (Bharat) Limited) filed revised income tax returns after amalgamating with multiple group entities pursuant to NCLT-approved schemes. The revised returns were filed after the statutory deadline under Section 139(5) of the Income Tax Act. The Department rejected them, citing procedural non-compliance. The Supreme Court held that when an NCLT-approved scheme of arrangement contains provisions enabling late filing of revised returns and the Department raises no objection within the prescribed 30 days, such schemes acquire statutory force binding the Department. Section 139(5) does not apply; the revised returns must be accepted and assessed accordingly, with the successor company assessed under Section 170(1) of the Income Tax Act."
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