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2016 (4) TMI 122 - AT - Income TaxRevision u/s 263 - claim of 1/5th of IPO expenses u/s. 35D - Held that:- The Commissioner has to be satisfied of twin conditions, namely, (i) the order of the Assessing Officer sought to be revised is erroneous; and (ii) it is prejudicial to the interests of the Revenue. If one of them is absent-if the order of the Income-tax Officer is erroneous but is not prejudicial to the Revenue or if it is not erroneous hut is prejudicial to the Revenue- recourse cannot be had to section 263(1) of the Act. The provision cannot be invoked to correct each and every type of mistake or error committed by the Assessing Officer, it is only when an order is erroneous that the section will be attracted. An incorrect assumption of facts or an incorrect application of law will satisfy the requirement of the order being erroneous The Gujarat Pollution Control Board has given consent and authorization treating the assessee an Industrial Undertaking - Decided in favour of assessee No disallowance has been made by the A.O u/s. 14A - Held that:- This observation of the Commissioner is also against the true facts of the case, the following observations/findings of the A.O would explain the position. "The submission of the assessee has been considered. Regarding investments, the assessee has put on records from its accounts evidence to demonstrate that the source of investment is out of interest free funds. Further regarding administrative expenses, the assessee has offered 0.5% of the average investments as disallowance u/s. 14A amounting to ₹ 8,80,758/-. Considering the details, the disallowance offered by the assessee during the assessment proceedings is accepted and a disallowance of ₹ 8,80,758/- is made u/s. 14A". From the above, it can be seen that that the A.O. has thoroughly examined the source of investment and after examination/verification, the A.O was convinced that the investment is out of interest free funds. - Decided in favour of assessee
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