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| The Tax Publishers2020 TaxPub(DT) 4323 (Mum-Trib) INCOME TAX ACT, 1961
Section 14A
Where no suo-motu disallowances were offered by assessee and it was stated that there was no application of section 14A or interest income earned from head office, but failed to explain as to how provisions of Rule 8D were not applicable, and AO based on information furnished by assessee, noted that explanation furnished by assessee was not acceptable, then findings recorded by AO were sufficient and a clear indication of his compliance of the procedure prescribed under section 14A(2).
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Disallowance under section 14A - Expenditure against exempt income - Assessee failed to explain as to how provisions of rule 8D were not applicable - No suo-moto disallowances were offered by assessee
AO made disallowance under section 14A. Assessee contended that there was no satisfaction recorded by AO before making said disallowance. Held: It was very clear from assessment order that there were no suo-moto disallowances from assessee. Assessee stated that there was no application of section 14A or interest income earned from head office, but failed to explain as to how provisions of rule 8D were not applicable. AO, on basis of information furnished by assessee, noted that explanation furnished by assessee was not acceptable. Findings recorded by AO were sufficient and a clear indication of his compliance of the procedure prescribed under section 14A(2) and thus, there was no merit in argument taken by assessee regarding satisfaction as required under section 14A(2).
REFERRED :
FAVOUR : Against the assessee.
A.Y. : 2011-12
INCOME TAX ACT, 1961
Section 14A
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