Case Law Details
Gulu Hassanand Raney Vs Asst. Director of I.T. Bangalore-CPC (ITAT Mumbai)
In the case of Gulu Hassanand Raney vs. Asst. Director of I.T. Bangalore-CPC (ITAT Mumbai), an appeal was filed against the order of assessment passed by the Assistant Director of I.T. The main issue in the appeal was whether the due date for filing the income tax return could be extended for the appellant, who was liable for audit under a law other than the Income Tax Act.
Analysis: The appellant argued that their accounts were audited by qualified chartered accountants as prescribed by the Companies Act, and therefore, the disallowance of the carry forward of business loss was incorrect. They also claimed that they were eligible for the extended due date for filing the income tax return, as they were liable to get their accounts audited as per the RBI’s approval letter.
The ITAT examined the relevant documents and noted that the appellant’s accounts were required to be audited under a law other than the Income Tax Act. Based on their interpretation of the law, the ITAT concluded that the due date for filing the income tax return was not extended for the appellant. Consequently, the appellant was not entitled to carry forward the business loss.
Conclusion: The ITAT dismissed the appeal, upholding the order of the Commissioner of Income Tax (Appeals) and the Assistant Director of I.T. The decision clarified that the extended due date for tax audit cases under the Income Tax Act does not apply to assessees liable for audit under other laws. This case highlights the importance of understanding the specific provisions related to the due date for filing income tax returns based on the applicable audit requirements.
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