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2014 (7) TMI 797 - AT - Income TaxJurisdiction of CIT u/s 263 to revise an order - principle of merger - omission in calculation of interest income – assessee contended that, the very levy of interest as was done by the A.O. was subject matter of appeal before the Ld. CIT(A) and subsequently by the ITAT. - Held that:- Assessee has advanced funds to Satyam Computers Services Ltd. - assessee has not advanced the funds on interest basis and subsequently, it filed recovery of principal amount with interest at 18% by filing a suit in City Civil Court, Hyderabad - the amount of interest can be brought to tax in the year in which the City Civil Court considered and decided the liability to repay the amounts of advance and interest and also rate of interest on which, advance should be repaid - the question of bringing to tax interest on different amounts as directed by the CIT does not arise - when the very basis of levy is subject matter of appeal, the CIT could not have invoke the jurisdiction u/s 263 in opining that higher amount should have been considered for levy of interest - there is no basis for CIT invoking jurisdiction u/s 263 - thus, the order of the CIT is set aside – Decided in favour of Assessee.
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