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2018 (12) TMI 916 - AT - Income TaxRevision u/s 263 - directions to AO to determine the expenses relatable to exempt income u/s 14A and disallowance of such expenses while computing the book profit under section 115JB - Held that:- the Special bench in the case of Vireet Investments (P. ) Ltd. [2017 (6) TMI 1124 - ITAT DELHI] has finally taken the view that the view beneficial to the assessee is to be taken while deciding the issue in term of the decision of Hon’ble Supreme Court in the case of CIT vs. Vegetable Products Ltd. [1973 (1) TMI 1 - SUPREME COURT]. In view of the above given facts and circumstances of the case, we are of the view that the AO has considered the issue during the original assessment proceedings and form a view permissible under law that no disallowance relatable to exempt income can be made under section 14A read with Rule 8D of the Rules while computing the book profit under section 115JB of the Act. We find that this issue is squarely covered in favour of assessee and against Revenue by the decision of Special Bench of this ITAT Delhi in the case of Vireet Investments (P. ) Ltd. (supra) and considering the facts in entirety, we quash the revision proceedings as the assessment order is neither erroneous nor prejudicial to the interest of the Revenue. Accordingly, we quash the revision order - decided in favour of assessee.
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