2013 (1) TMI 955

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....hi with Mr. P.C. Tripathi for the Respondent. ORDER Objection waived. 2) In this appeal the revenue has pressed the following question of law for consideration of this Court. Whether on the facts and in the circumstances of the case and in law the Tribunal was right in setting aside the order of the Commissioner of Income Tax passed u/s. 263 of the Income Tax Act? 3) While completing t....

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....ice under Section 263 of the Act on the ground that the Assessing officer has not correctly made dis-allowance which resulted in lower disallowance and consequent under assessment of income. The Commissioner of Income Tax by order dated 30/3/2011 directed the Assessing officer to re-compute the dis-allowance of interest on borrowed funds invested in shares (dividend income from which is exempted) ....

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....on 115 JB of the Act. Thus the assessed income/ book profits continue to be the same even after dis-allowance of higher amounts under Section 14A of the Act. Therefore, no prejudice is caused to the revenue by the order dated 30/9/2008 of the Assessing Officer. 6) We note that one of the ingredient to exercise jurisdiction under Section 263 of the Act is not satisfied viz. prejudice to the reve....