|The Tax Publishers2020 TaxPub(DT) 2348 (Mum-Trib) : (2020) 185 ITD 0215
INCOME TAX ACT, 1961
There was not even a whisper of the reason, barring reference to rule 8D(2)(i), for rejecting suo motu disallowance offered by assessee. Accordingly, invocation of rule 8D was not in terms of mandate laid down under section 14A(2) and, therefore, additional disallowance was deleted.
Disallowance under section 14A - Expenditure against exempt income - Invocation of rule 8D - Non-recording of satisfaction by AO
Assessee-company earned tax-exempt dividend income and offered suo moto disallowance under section 14A. AO invoked rule 8D and worked out additional disallowance. Assessee challenged this on the ground of non-recording of satisfaction by AO.Held: AO noted explanation of assessee and proceeded to disregarded the same on the basis of working of rules 8D(2)(i) and 8D(2)(iii). There was no other, and in fact not, reason for rejection of computation of disallowance by assessee. As a matter of fact, on the fact of this case, there was not even a whisper of the reason, barring reference to rule 8D(2)(i), for rejecting suo motu disallowance offered by assessee.
FAVOUR : In assessee's favour.
A.Y. : 2013-14
APPELLATE TRIBUNAL RULES, 1963
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