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2018 (2) TMI 1694 - AT - Income TaxRevision u/s 263 - as during assessment proceedings AO did enquire about the disallowance u/s 14A - Held that:- Order passed by Ld. CIT is not sustainable in view of the fact that AO has already examined this aspect and has already made a disallowance. The provisions of section 263 are not applicable in a case where the AO had examined a particular issue and had taken a plausible view. Moreover, we find that it is an admitted fact that assessee had not received any exempt income during the year. The Hon'ble Delhi High Court in the case of CIT Vs. DLF Ltd. [2012 (9) TMI 626 - DELHI HIGH COURT] while deciding the appeal filed by revenue against the Tribunal order, quashing the order u/s 263 has again held that where there is no exempt income, no disallowance can be made u/s 14A of the Act. In this case, the assessee had even received some exempt income also even then the Hon'ble Court held that the disallowance u/s 14A was a debatable issue and therefore the view taken by the Assessing Officer was sustainable one and therefore section 263 was not applicable - Decided in favour of assessee.
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