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2017 (11) TMI 633 - AT - Income TaxRevision u/s 263 - AO by following the Tribunal Order for the assessment years 2010-11 and 2011-12 held that the disallowance u/s 14A r.w.8D on 5% of the exempt income - Held that:- AO during the course of assessment proceedings, has raised the specific query on the issue of disallowance u/s14A r.w.r 8D which was replied by the assessee. Another factor which is worth mentioning is that the assessee has not made any investments in the security yielding the tax free income but was holding the shares as stock-in-trade as the assessee was making purchase of shares for the purpose of trading in shares and securities. Having all the facts of the case and in the light of various decisions as cited by both the parties, we are not in agreement with the ld. PCIT that the order of the AO is erroneous and prejudicial to the interest of revenue as the AO after calling for information from the assessee on the issue of disallowance u/s 14A r.w.r 8D has taken a conscious view which is a possible view out of two views and applied the decision of the Tribunal in assessee‟s own case in the earlier years. The mere fact that the revenue has challenged the decision of the Tribunal in assessee‟s own case for the assessment years 2010-11 and 2011-12 is not rendered the decision of the AO as erroneous and prejudicial to the interest of revenue as the AO has taken a possible view after examining and considering the reply and arguments of the assessee as rendered during the course of assessment proceedings. The assessment order passed by the AO after considering of all the facts is neither erroneous nor prejudicial to the interest of revenue. Therefore, the ld.PCIT is wrong in assuming the revisionary jurisdiction u/s 263 - Decided in favour of assessee.
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