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2017 (5) TMI 1803 - ITAT MUMBAIRevision u/s 263 by CIT - allowability of interest u/s 36(1) (iii) and 14A - HELD THAT:- The issue of allowability of interest u/s 36(1) (iii) and 14A was exhaustively examined in the course of regular assessment proceedings including issue of capitalization and revenue expenditure and the AO after examining in detailed all the aspects disallowed part of interest expenditure u/s 14A and in computing capital gains and allowed balance expenditure u/s 36(1)(iii) of the Act. It is an undisputed fact that the assessee has already challenged the interest disallowance by filing an appeal which is still pending as on date. From the records, it is also reflected that the AO has examined all the aspects including source and utilization of funds for land transaction and in this respect, the AO had issued summons u/s 133(6) of I.T. Act to Americorp which was duly responded with all details. Therefore, in the light of above facts and circumstances, it cannot be concluded by Ld. Pr.CIT that no inquiry was done or enquiry done was inadequate. However as per the facts of the present case, it is a case of detailed inquiry by partly disallowing and partly allowing the same. It is a settled law that the power conferred u/s 263 of the I.T. Act, upon the Commissioner cannot be invoked for reactivating stale issues. Therefore, after considering the above facts and circumstances of the present case, we allow these grounds of appeal filed by the assessee as the order of Pr. CIT u/s 263 is not sustainable. Decided in favour of assessee.
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