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2015 (9) TMI 228 - HC - Income TaxRevision u/s 263 - CIT(A) setting aside the order passed by AO wherein he allowed interest paid in respect of income by way of dividend exempt under section 10(34) against taxable income, contrary to the provisions of section 14A of the Act - ITAT set aside revision orders - Held that:- Under the amended provisions, the authority of the Assessing Officer has been whittled down. Jurisdiction conferred is purely an arithmetical exercise. An Assessing Officer has to look whether tax or interest is due on the basis of return filed by the assessee after adjustment or any refund is due to the assessee on the basis of return filed. Therefore, on or after 1st June, 1999 law does not confer jurisdiction on the Assessing Officer to disallow any expenditure claimed in the return of income while preparing the intimating under Section 143(1). A.O.'s order u/s 143(1) preparing an intimation on 16.10.01 is not erroneous and prejudicial to the interest of the revenue mere because that no disallowance of expenditure relating to earning of exempted dividend income was made by the A.O., in his intimation sent u/s 143(1) of the Act, inasmuch as, there was no scope of making such disallowance while preparing the intimation u/s 143(1) of the Act as would be evident from the provisions contained in section 143(1) of the Act effected from 1.6.99. We, therefore, hold that the CIT’s order u/s 263 is without jurisdiction and is liable to be set aside - Decided in favour of assessee.
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