2017 (5) TMI 843

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....Respondent : Sanjay Bansal, Senior Advocate, with Amit Prashad, Advocate JUDGMENT Ajay Kumar Mittal, J. 1. This appeal has been preferred by the appellant-Revenue under section 260A of the Income-tax Act, 1961 (in short, "the Act") against the order dated March 28, 2016, annexure A.3, passed by the Income-tax Appellate Tribunal, Division Bench, Chandigarh (in short, "the Tribunal") in I. ....

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.... of income. On examination of the assessment record and the assessment order of the assessee for the assessment year 2009-10, it was revealed that the Assessing Officer had limited the disallowance under section 14A of the Act to the amount of exempt dividend income, even though he had computed the disallowance under rule 8D of the Income-tax Rules, 1962, (in short, "the Rules") to be at a higher ....

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....made by the Assessing Officer under section 14A of the Act, the action of the Commissioner of Income-tax under section 263 of the Act is also quashed being on the same issue. Hence the instant appeal by the Revenue. 3. We have heard learned counsel for the parties. 4. At the outset, learned counsel for the assessee submitted that the Commissioner of Income-tax while issuing notice under sect....

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....t was improper. 5. However, learned counsel for the appellant-Revenue urged that though the issue has been decided in favour of the assessee, yet invoking the provisions of section 263 of the Act cannot be said to be inappropriate in the facts and circumstances of the case. 6. After hearing learned counsel for the parties, we notice that the issue on the merits has been decided in favour of ....