Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (1) TMI 1122 - AT - Income TaxValidity of order passed u/s 263 - Held that:- As per section 263 - The two conditions for invoking power under this section must be fulfilled - From the assessment order itself it is evident that the AO had in fact applied his mind and duly understood the facts of the case as well as the law applicable - AO has also made sufficient inquiry - On these two counts, it is not an erroneous assessment order. The next step is to ascertain whether some prejudice was caused to the interest of the Revenue - According to law, an erroneous order is an order which suffers from a patent lack of understanding of facts as well as law - While attracting the provisions of Section 14A, it is necessary to examine whether there was a proximity cause for disallowance which is its relationship with exempted income - Following Gillete Group India Pvt. Ltd. [2012 (6) TMI 406 - ITAT DELHI] - A disallowance u/s 14A cannot exceed the expenditure actually claimed by the assessee - The learned Commissioner was not justified in invoking the provisions of Section 263 of IT Act - Decided in favour of assessee.
|