TaxTMI 
TaxTMI 
2023 (4) TMI 984
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..... 263 of the Income Tax Act, 1961 ("the Act") to revised the assessment order dated 22.12.2019 He failed to appreciate that the said assessment order was neither erroneous nor prejudicial to the interests of the Revenue. He failed to appreciate that Id. Assessing officer ("ld. AO") after making all possible enquiries, examining the facts and proper application of mind, completed the assessment of the assessee u/s 143(3) of the Income Tax Act, 1961, which was in accordance with the provisions of law. 2. The Id. PCIT erred in holding that the ld. AO has completed the assessment u/s. 143(3) of the Act without conducting requisite enquiry and thereby erred in directing the ld. AO to re-examine the issue of disallowance u/s 14A r.w.r. 8D and....
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....rds it is observed that AO has considered 1% of tax-free bond of Rs.265,83,64,000/- instead of entire eligible amount of investment of Rs.581,34,43,546/-, which includes Tax free Bonds and quoted Mutual Fund Units. The assessee has used the proceeds received from the above transactions for earning income using concept of mutuality which ultimately does not form part of total income of the assessee. The AO should have considered entire tax free investment of Rs.581,34,43,546/- instead of Rs.265,83,64,000/- for the purpose of disallowance u/s. 14A read with rule 8D of the Act. Hence, the calculation of addition made u/s 14A read with rule 8D during assessment is erroneous in as much as prejudicial to the interests of the revenue. 4. In respo....
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....3 crores as on 31.03.2017 into 'Tax Free Bonds and Rs.265.87 crores as on 31.03.2016. However, while calculating the tax liability, the assessee has not made any disallowance u/s 14A in respect of expenditure incurred in relation to income not includible in total income for A.Y 2017-18. There is no doubt that the assessee has investments for the year ending 31.03.2017 in Tax Free Bonds and Mutual Fund Units vis. Non Current Investments including totaling to Rs.347.79 Crores and Current investments including quoted mutual funds totaling to Rs.241.51 Crores. 5. Before us, Ld. Counsel for the Assessee submitted that this issue was inquired in detail by the Assessing Officer during the course of assessment proceedings which is evident from....