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here is no provision in that section to eliminate the dividend income from specified foreign company before setting off of loss and similar to the provisions and specific direction present in section 115BBE. In our considered view that taxable income has to be determined as per the provisions of Income Tax Act i.e. first to compute the total income based on the Chapter-IV and then apply the Chapter-VI and VIA in order to compare the aggregation and set off of losses. After determining the taxable income by applying the above Chapters and if still there is profit, then such taxable profit has to be taxed according to the prevailing rates as per the various applicable provisions of the Act. Since assessee is having substantial loss and as per the provision of Chapter-VI, the taxable income has to be adjusted first before applying any other provisions contained in the Act particularly when there is no specific provision contained in section 115BBD wherein to impose restriction on carrying forward any loss similar to provision contained in section 115BBE and section 115BBDA. Therefore, we do not see any reason to treat this assessment as erroneous nor it is passed by erroneous interpretation of facts or law. Accordingly, the order passed u/s 263 of the Act by Ld. CIT is not as per provisions contained therein or as per the jurisdictional precedence. Hence, it is set aside. Resultantly, the grounds raised by the assessee are allowed. 9. In the net result the appeal filed by the assessee is allowed.

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Sec. 263 of Income Tax Act, 1961— Revision - An erroneous order would be an order which suffers from a patent lack of jurisdiction. Prejudicial to the interest of the revenue would mean an erroneous order which goes against the interests of revenue. Therefore, both the conditions must pre-exist to exercise revision u/S: 263 of the Act. Since, the assessment order passed by the AO is neither prejudicial to the interest of the revenue nor an erroneous, invoking of exercise under section 263 of IT Act ,1961 is unjustified. - TATA MOTORS LTD. V/s DEPUTY CIT - [2020] 184 ITD 680 (ITAT-MUMBAI)

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