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2018 (8) TMI 1042 - AT - Income TaxRevision u/s 263 - disallowance u/s 14A r.w.r 8D - The PCIT directed the AO to reframe the assessment after apply the Rule 8D of the Rules as non-applying of Rule 8D, the assessment is both erroneous and prejudicial to the interest of the Revenue. - Held that:- this is not a fit case for revision proceedings under section 263 of the Act, as the disallowance made by AO under section 14A of the Act, was after due application of mind to the facts of the case. The AO has conducted enquiry in regard to expenses relatable to exempt income and assessee has filed a complete note before the AO during the course of assessment proceedings and accordingly, the assessment was framed under section 143(3) of the Act. Wherever, there are two possible views and the AO has taken one of the courses permissible, the PCIT cannot exercised his power under section 263 of the Act to differ with a view of the AO even if there has been loss of revenue. - Revision order quashed - Decided in favor of assessee.
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