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TMI Blog2022 (1) TMI 1144X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances of the case as well as law on subject the learned Pr. Commissioner of Income-tax-1 Surat erred in set aside the assessment made u/s. 143(3) r.w.s 147 of the act considering the erroneous & prejudicial to the interest of the revenue." 2. Brief facts of the case are that the assessee is a company engaged in the business of Dyeing and Printing on job working basis. The assessee filed its return of income for the A.Y. 2012-13 on 29.09.2012 showing total taxable income of Rs. 9,40,110/-. The case was selected for scrutiny and the assessment was completed under section 143(3) on 30.01.2015. The Assessing Officer (AO) while passing the assessment order made disallowance under section 14A of the Act of Rs. 2,35,039/-. Subsequently, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the ld. Authorised Representative (ld.AR) of the assessee and ld.CIT-DR for the Revenue and perused the material on record. The ld.AR of the assessee submits that during the relevant period under consideration, the assessee earned dividend income/exempt income of Rs. 2,02,337/-. The AO during the original assessment, examined the issue and made disallowance of Rs. 2,35,039/-. The AO made excess disallowance, though as per law disallowance under section 14A of the Act, the disallowance under section 14A, should not exceed the exempt income. Yet, the assessee accepted the disallowance under section 14A and no further appeal was filed. The assessment was reopened on the issue of deduction under section 80IA of the Act and assessment order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period of limitation. On merit, the ld.CIT-DR submits that ld.Pr.CIT set-aside the assessment and directed for de-novo assessment as the AO has not computed the disallowance under section 14A as per formulae provided under Rule 8D, therefore, the disallowance has to be worked out irrespective of amount of exempt income. The ld CIT-DR submits that the order passed by ld PCIT is valid as the assessment order passed by AO is erroneous and in so far as prejudicial to the interest of revenue and may be upheld. 5. We have considered the rival submission of both the parties and have perused the material available on record. There is no dispute that during the period under consideration, the assessee earned exempt income/dividend income of Rs. 2,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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