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2023 (4) TMI 984 - ITAT MUMBAIRevision u/s 263 by CIT - Disallowance u/s 14A - premise of the Ld. PCIT in his revisionary order is that, Assessee has invested substantial amount which are investment which have yielded exempt income - HELD THAT:- This investment constituted tax free bonds and also mutual funds investment. As undisputed fact that assessee has earned exempt income from tax free bond alone for sums and other investment have not yielded any exempt income and in fact were taxable investments. Once, that is so, the entire premise of the Ld. PCIT is incorrect and therefore, the assessment order cannot held to be erroneous, in so far as prejudicial to the interest of revenue. Now, whether the disallowance made by the AO is correct or it is excessive the same is already subject matter of first appeal and therefore, we are not going into this aspects. However, in so far as observation and the finding of the Ld. PCIT in setting aside to the issue of disallowance to the AO is quashed and accordingly, appeal of the Assessee is allowed.
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