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The Tax Publishers
Audit under RBI regulations whether equivalent to Tax audit for return filing timelines
Facts:
Assessee a non-resident was in the business of dry docking and ship repairing. Under RBI FEMA regulations he was supposed to get his books audited by a Chartered Accountant. He claimed carry forward and set off of losses in his return which was filed beyond time limit as per law. His plea was because he was supposed to get his books audited by a CA his time limit for filing return ought to be read akin to tax audit for which extension of time for filing return was granted vide CBDT circular for the said asst. year. This was not appreciated by lower tax authorities. On higher appeal by the assessee -
Held against the assessee that the CBDT circular expressly extended time limit for only those assessee's who were supposed to get their books audited under Income tax act and not under other legislations. Assessee was hence not eligible to claim carry forward of business losses.
Case: Gulu Hassanand Raney v. Asstt. DIT 2023 TaxPub(DT) 1925 (Mum-Trib)
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