2021 (4) TMI 206

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....he case as well as law on the subject, the learned Pr. CIT has erred in passing the order u/s. 263 by invoking of Section 263 of the Act, although the assessment order passed u/s. 147 r.w.s. 143(3) of the I.T. Act, 1961 was neither erroneous nor prejudicial to the interest of the revenue. 2. On the facts and in circumstances of the case as well as law on the subject, the learned Pr. CIT has erred in setting aside the assessment with the direction to frame the assessment de novo after making disallowance of interest expenditure u/s. 14A read with rule 8D when in the original assessment the disallowance u/s. 14A was made of Rs. 2,35,039/- which is more than the exempt dividend income of Rs. 2,02,337/-. 3. It is therefore prayed that above....

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.... order dated 30.01.2015. The case was again reopened under section 147 of the Act on the issue of deduction of section 80IA of the Act. The AO after completing required formality and giving opportunity made disallowance of Rs. 3,73,098/- under section 80IA of the Act in assessment order passed under section 147 read with section 143(3) dated 28.12.2017. 3. The Ld. PCIT issued show cause notice under section 263 of the Act dated 13.11.2018 by taking view that the AO worked out disallowance under section 14A of the Act of Rs. 2,35,039/- in scrutiny assessment. The scrutiny of working of disallowance reveals that disallowance was not worked out correctly. The AO held that entire interest expenditure attributable to exempt income. However, it ....

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....(AR) of the assessee and the learned departmental representative (DR) for the revenue and gone through the orders of the lower authorities. The Ld. AR for the assessee submits that he has two fold submission. In his first submission, the learned AR for the assessee submits that issue of section 14A of the Act was examined by AO in the assessment order passed under section 143(3) of the Act on 30.01.2015. Admittedly, the assessment was reopened under section 147 on the issue of deduction under section 80IA of the Act. In reassessment, there was no issue with regard to the disallowance of 14A of the Act. The Ld. PCIT though in concluding part of assessment order set-aside the assessment order under section 143(1) of the Act dated 28.02.2017. ....

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....ave considered the rival submission of both the parties and deliberated on the facts of the case and various case laws relied by the learned AR of the assessee. Admittedly, the issue of section 14A of the Act was discussed and disallowance was made by the AO in the assessment order dated 30.01.2015. As per the provision of section 263(2) of the Act, no order shall be made under sub-section (1) after expiry of two (02) years from the end of financial year in his order said to be revised was passed. As noted above, the assessment order was passed on 30.01.2015. Admittedly, the assessment was reopened under section 147 on the issue of deduction under section 80IA of the Act. In the re-assessment order the A.O. has not examined the issue of sec....