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2021 (2) TMI 880 - ITAT AHMEDABADRevision u/s 263 - disallowance u/s.14A read with Rule - Suo moto disallowance made by assessee accepted - set off / carry forward of the business loss/unabsorbed depreciation of demerged company - HELD THAT:- The appellant-company filed detailed replies supported by relevant documents and other evidences and after considering the facts and circumstances and after full and proper application of mind the Assessing Officer accepted the disallowance suo motu made by the appellant-company U/S.14A read with Rule 8D and also that having regard to the facts and the provisions of section 72A of the I.T. Act, the appellant-company was entitled to set off / carry forward of the business loss/unabsorbed depreciation of demerged company as per the Composite Scheme approved by the Hon'ble Gujarat High Court. As we can see that Ld. A.O. has considered all aspects of aforesaid income and after thorough application of mind the A.O. has accepted the disallowance. Thus, we allow this ground of appeal. It is well settled principle of law where A.O. has exercised quasi-judicial power vested in him in accordance with law and arrived at a conclusion and such a conclusion cannot be found to be erroneous simply because Commissioner does not feel satisfied with the conclusion. CIT ought not to have initiated proceedings u/s 263 of the Income Tax Act when already enquiry is made by the Assessing Officer. - Decided in favour of assessee.
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