Jammu And Kashmir Bank Ltd. vs Assistant Commissioner Of Income Tax on 8 February, 2008
The decision of the Tribunal, Delhi Bench in the case of Sexa Securities & Finance Co. Ltd. v. ITO (supra) is directly on the issue where the order passed by the CIT under Section 263 on account of non-consideration of disallowance of expenses under Section 14A was held to be valid in law. Therefore, this decision also supports the case of the Revenue. As regards the contention of the assessee that the order passed under Section 263 is bad in law because he has acted merely on the proposal of Addl. CIT without independent application of mind, we do not find any substance in the same. Para 2 of the impugned order clearly shows that along with the proposal, the Addl. CIT had also sent the case records and these were examined by the CIT. Therefore, it cannot be said that CIT, Jammu acted merely on the proposal sent to him.