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2022 (8) TMI 1362 - ITAT CHENNAIRevision u/s 263 by CIT - issue already resolved and closed by an order for full and final settlement under Direct Tax Vivad Se Vishwas Scheme, 2020 in Form No.5 issued by the Revenue Department - disallowance of expenses relatable to exempt income by invoking the provisions of s. 14A of the Act r/w Rule 8D(2) - HELD THAT:- As gone through the revision order as well as the assessment order and find that the PCIT has nowhere gone into the details of expenses or given a finding how the assessment order is erroneous so far as the prejudicial to the Revenue. Even, there is no whisper about the facts how the A.O has not made proper disallowance of expenses relatable to exempt income while invoking the provisions of s. 14A of the Act r/w Rule 8D(2) of the Rules. We have extracted the findings of PCIT and there is no whisper or no discussion at all as to how and which expenses are relatable to exempt income . See GOPALAKRISHNAN RAJKUMAR, GOPALAKRISHNAN RAVIM case [2022 (5) TMI 1388 - MADRAS HIGH COURT] as held taxpayers whose appeals were pending at any level were entitled to avail benefit of the scheme. Therefore, there is no justification in proceeding further with the impugned proceedings initiated by the first respondent under Section 263. The Hon’ble High Court in this case has categorically held that on the very same issue, the PCIT has no power to initiate proceedings u/s. 263 of the Act. Thus we are of the view that the PCIT has exceeded his jurisdiction in assuming jurisdiction u/s. 263 of the Act in the present case. Decided in favour of assessee.
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