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2015 (6) TMI 1230 - AT - Income TaxDeduction u/s 80P(2)(d) - Application of provisions 14A for computing the deduction under section 80P(2)(d) - CIT (Appeals) who after considering the provisions of section 14A of the Act as well as section 57 directed AO to compute the quantum of deduction admissible to the assessee un/s 80P(2)(d) by taking into consideration only the expenses incurred by way of commission /remuneration paid to the banker or any other person for realizing such dividend and expenditure incurred wholly and exclusively for earning of the dividend and interest income - assessee contended before the learned CIT (Appeals) that the provisions of section 14A of the Act could not be applied while computing the deduction under section 80P(2)(d) - CIT (Appeals) dismissed the appeal of the assessee being not maintainable against the appeal effect order passed by the AO - HELD THAT:- CIT (Appeals) has not issued any direction to the Assessing Officer for applying the provisions of section 14A - if the Assessing Officer has applied the provisions of section 14A of the Act as per the contention of the learned counsel for assessee, it should be considered as appeal effect given in defiance of the order of the CIT (Appeals). Thus the appeal effect order passed by the Assessing Officer is appealable and appeal lies against his order before the learned CIT (Appeals). The decisions relied upon by the learned counsel for assessee in the case of Bakelite Hylam Ltd . and in the case of Caltex Oil Refining (India) Ltd. [1992 (12) TMI 23 - BOMBAY HIGH COURT] clearly support the contention of learned counsel for assessee. CIT (Appeals) was, therefore, not justified in holding that no appeal lies against the appeal effect order passed wrongly under section 250/154 of the Act by the Assessing Officer. The appeal effect order passed by the Assessing Officer in contravention of the order of the learned CIT (Appeals) is appealable order and appeal lies against the order of the Assessing Officer before the learned CIT (Appeals). The order of the learned CIT (Appeals) is thus set aside and consequently the matter in issue is restored to the file of the learned CIT (Appeals), Panchkula with direction to redecide the appeal of the assessee on merits - Appeal of the assessee is allowed for statistical purposes.
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