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| The Tax Publishers2019 TaxPub(DT) 0736 (Del-HC) INCOME TAX ACT, 1961
Section 14A(2)
Invocation of rule 8D without recording satisfaction as to non-correctness of assessee's claim of suo motu disallowance under section 14A, was in contravention of mandate laid down under section 14A(2), therefore, additional disallowance was deleted.
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Disallowance under section 14A - Expenditure against exempt income - Invocation of rule 8D - Non-recording of satisfaction
Assessee earned tax-free dividend income and claimed suo motu disallowance. However, AO invoked rule 8D and worked out additional disallowance and that too, without recording satisfaction as to non-correctness of assessee's claim. Held: Invocation of rule 8D without recording satisfaction as to non-correctness of assessee's claim of suo motu disallowance under section 14A, was in contravention of mandate laid down under section 14A(2), therefore, additional disallowance was deleted.
Relied:Maxopp Investment Ltd. v. CIT (2018) 402 ITR 640 (SC) : 2018 TaxPub(DT) 1403 (SC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-12
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