The Tax Publishers2020 TaxPub(DT) 0201 (Kol-Trib)

INCOME TAX ACT, 1961

Section 14A Rule 8D

Assessee had not given any working to justify suo motu disallowance under section 14A. He made certain claims without supporting the same with figures. Also AO had recorded satisfaction, that he was unable to accept suo moto disallowance made by assessee under section 14A, prior to invoking rule 8D.

Disallowance under section 14A - Expenditure against exempt income - Invocation of rule 8D - Assessee not able to justify suo moto disallowance

Assessee earned tax free dividend income and claimed suo motu disallowance under section 14A. AO invoked rule 8D and made additional disallowance. Assessee's case was that invocation of rule 8D, without recording cogent satisfaction pointing out incorrectness in disallowance suo moto offered by assessee, was in gross violation of of section 14A(2) read with rule 8D(1). Held: Assessee had not given any working to justify suo moto disallowance under section 14A. He made certain claims without supporting the same with figures. Also AO had recorded satisfaction, that he was unable to accept suo moto disallowance made by assessee under section 14A, prior to invoking rule 8D.

Relied:Maxopp Investment Ltd. v. CIT (2018) 402 ITR 640 (SC) : 2018 TaxPub(DT) 1403 (SC)

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2012-13


INCOME TAX ACT, 1961

Section 115JB

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