Extended return-filing deadline for loss carry-forward applies only where audit is required under the Income-tax Act.

The CBDT's extension of the return-filing deadline for that year applied only to assessees whose accounts were required to be audited under the Income-tax Act, not to those audited solely under another law. Although Explanation 2 to section 139(1) treats an assessee subject to audit under any other law as covered by the expression "due date," the extended date did not follow for loss carry-forward purposes. As the assessee's return was filed after 30.09.2016, it was belated for carrying forward business loss, and the disallowance was sustained.

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Issues: Whether the assessee, whose accounts were audited pursuant to RBI approval under another law, was entitled to the extended due date for filing return and consequent carry forward of business loss.

Analysis: The assessee's accounts were required to be audited under the RBI permission issued in relation to continuation of its proprietary business, and the return was filed on 17.10.2016 for the assessment year 2016-17. The expression "due date" in Explanation 2 to section 139(1) of the Income-tax Act, 1961 includes an assessee whose accounts are required to be audited under any other law. However, the extended due date announced by the CBDT for that year was held to apply only to cases where the audit was required under the Income-tax Act, and not to cases audited under some other law. On that basis, the due date for the assessee remained 30.09.2016, so the return was belated for the purpose of carrying forward loss.

Conclusion: The assessee was not entitled to the extended due date or to carry forward the business loss.

Final Conclusion: The disallowance of carry forward of loss was sustained, and the appeal failed.

Ratio Decidendi: The CBDT's extension of the return-filing deadline applies only to assessees whose accounts are required to be audited under the Income-tax Act, not to assessees audited solely under another law for purposes of section 139(1).

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