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2016 (5) TMI 619 - AT - Income TaxRevision u/s 263 - non tds u/s 194A - Held that:- If the AO has adopted one of courses permissible in law which resulted in loss of revenue or where two views are possible and AO has taken one view with which the CIT does not agree, it cannot be treated as an erroneous order prejudicial to the interest of revenue unless the view taken by the AO is unsustainable in law. The assessee in the instant case has not replied to the show cause notice issued by the Ld.CIT, however, the record shows that prior to initiation of proceedings u/s.263 the AO has dropped the rectification proceedings issued u/s.154 on the very same issue. It is also clear from the record that no amount of interest to Tata Finance and Tata Motors Ltd. was outstanding at the end of the accounting year and the entire amount was paid to the above concerns. Under these circumstances no disallowance u/s.40(a)(ia) was called for in view of various decisions in favour of the assessee. Since the issue before the Ld.CIT was a debatable one and since the AO has taken a possible view, therefore, the Ld.CIT in our opinion is not justified in invoking jurisdiction u/s.263 of the I.T. Act. - Decided in favour of assessee.
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