TaxTMI 
TaxTMI 
2023 (3) TMI 1042
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....Income Tax Act, 1961 (hereinafter referred to as Act) dated 18/07/2017 by the ld. Asst. Director of I.T. Bangalore-CPC (Int. Tax Ward 4(1)(1),Mum (hereinafter referred to as ld. AO). 2. The assessee has raised the following grounds of appeal:- 1. Learned CIT(A) 58, Mumbai erred in law in confirming order u/s 143(1)and the order u/s 154 by the ADIT.CPC, Bangalore on the ground that from the plain reading of clause Ill of Reserve Bank of India's approval letter dated 5 August, 1985, it is soon that the RBI has issued a direction to get the accounts audited annually the books of account of limited companies by a qualified accountant, as prescribed in section 227 and 228 of Companies Act, 1956. The appellant prays that approval ....
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....er u/s 143(1)and 154 by ADIT CPC, by misconstruing and misinterpreting clause ill of RBI's approval letter dated 5th August, 1985 presuming that sanction is given for audit of limited company only. The appellant prays that RBI's letter dated 05th August, 1985 states "the concern should have its accounts audited annually by qualified accountants competent to audit the accounts of limited companies." As per provisions of section 227 and 228 of the Companies Act, 1956, qualified chartered accountant practicing as proprietor/ firm are entitled to audit accounts of proprietary concern, firms, limited companies etc. The appellant prays that word used in letter dated 5th August, 1985 "competent to audit the accounts of limited companies" i....
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....Act, 1956, hence applicable due date to file its return of income will be as applicable to its, whose accounts are liable to audit under any other law (i.e. extended due date) and the appellant filed its return for AY 2016-17 on 17.10.2016 i.e. within time prescribed u/s 139(1) and as such entitled to carry forward business loss Rs.800566 and deprecation Rs.37735. 7. The appellant prays to allow carry forward of loss of Rs.838,301 i.e. business loss Rs.800566 and depreciation loss Rs. 37735 as it got its accounts audited by Chartered Accountant and filed return of income within extended due date for A.Y.2016-17 8. The appellant craves leave to add, amend, alter, substitute and/ or modify any of the ground/s of appeal as ma....
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....tion 139(3) r.w.s.80 of the Act, the loss claimed by the assessee shall not be allowed to be carried forward to subsequent years. The ld. AR before us placed on record copy of press release dated 09/09/2016 issued by CBDT extending the due date of filing of returns to 17/10/2016 for A.Y.2016-17. For the sake of convenience, the said press release is reproduced hereunder:- Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, 9th September, 2016 Press Release Sub:- CBDT Extends due date for filing of Income Tax Returns - reg The due date for filing of Income tax returns by tax payers whose accounts are required to be audited under the Income Tax Act is the 3....
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.... to Section 139(1) of the Act which reads as under:- Explanation 2.-In this sub-section, "due date" means,- (a) where the assessee [other than an assessee referred to in clause (aa]) is- (i) a company;[***] or (ii) a person (other than a company) whose accounts are required to be audited under this Act or under any other law for the time being in force; or (iii) a working partner of a firm whose accounts are required to be audited under this Act or under any other law for the time being in force, The [30th day of September] of the assessment year; (aa) in the case of an assessee [who] is required to furnish a report referred to in section 92E, the 30th day of November of the ass....
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....e Tax Act while filing the income tax returns. The said extended due date benefit cannot be extended to those assessee's who were liable to get their accounts audited under any other law for the time being in force which is the case as that of the assessee before us. Hence, we hold that due date of filing of income tax return for the assessee for A.Yrs. 2016-17 is 30/09/2016 and not 17/10/2016 as contended by the ld. AR. 3.4. With regard to observation made by the ld. CIT(A) in page 6 of the order, that assessee has not carried out business in the name of any limited company thereby warranting the accounts to be audited by a person who is capable to audit the limited company, are of absolutely no relevance to the facts and we hold that t....