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2021 (4) TMI 409 - HC - Income TaxRevision u/s 263 - Disallowance u/s 14A - HELD THAT - Since the Tribunal had already decided the issue with regard to Section 14 A in favour of the assessee in respect of the assessment year 2002-03 we direct the Assessing Officer to give effect to the impugned orders passed by the Tribunal taking into consideration the earlier order passed by the Tribunal for the Assessment Year 2002-03, dated 31.01.2008 and decide the matter in accordance with law. So far as the first question of law is concerned, we are leaving it open and the same would be decided in an appropriate case.
Issues:
Challenging order passed by Income Tax Appellate Tribunal on Assessment Years 2001-02 and 2004-05. Substantial questions of law: (i) Correct invocation of Section 263 of Income Tax Act, (ii) Applicability of Section 14A to cases under Chapter VI A. Analysis: The Income Tax Appellate Tribunal dismissed the appeals filed by the assessee, stating that the Commissioner of Income Tax's observation on disallowance of expenses relating to non-members was independent and had no impact on the main issue. The Tribunal held that as the issue of disallowance under Section 14A had been settled for a previous assessment year, the Commissioner could not revise the order under Section 263. Additionally, the Tribunal found that the issue of deduction under Section 80P was separate from disallowance under Section 14A, and the Assessing Officer had not considered Section 80P. Thus, the Tribunal upheld the Commissioner's order under Section 263. The appellant's counsel argued that since the Tribunal had previously ruled in favor of the assessee regarding Section 14A for the assessment year 2002-03, the authorities could not take a contradictory stance for other assessment years. On the other hand, the respondent's counsel suggested directing the Assessing Officer to implement the Tribunal's orders considering the previous ruling for the assessment year 2002-03. Considering the arguments, the court directed the Assessing Officer to give effect to the Tribunal's orders based on the previous ruling for the assessment year 2002-03. The court left the first question of law open for determination in a suitable case. The Tax Case Appeals were disposed of without costs.
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