FIBA Throw-in spot

[actuary77]

I received a question from my sister who coaches in the Philippines. They follow FIBA rules over there.

A1 gets fouled prior to the start of "continuous motion" in the lane for a FG try. The official rules that the foul is not in the act of shooting, but after the whistle was blown, A1 continues the shot and the ball goes in. (Team A is not in the bonus, or per FIBA parlance, Team B is not in the penalty) The ball is put back in play from the sideline (FT extended) instead of the end line.

Per NFHS, I'm pretty sure the throw in spot would be from the end line and it doesn't matter if the ball went in or not since the ball is dead at that point. But the official correctly (?) quoted this rule from the FIBA Rule Book:

17.2.6. Whenever the ball enters the basket, but the field goal or the free throw is not valid, the subsequent throw-in shall be administered at the free-throw line extended.

Was this rule correctly applied? I'm just wondering what the intent of this rule is and what other situations this may apply to.