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| The Tax Publishers2020 TaxPub(DT) 4373 (Mad-HC) INCOME TAX ACT, 1961
Section 14A(2)
Assessee was only a proprietorship concern, whereas AO sought to disallow even the directors' remuneration under section 14A, which was not even fact situation of legal jurisprudence. Accordingly, it was clear that AO failed to record satisfaction in terms of section 14A(2) and, therefore, matter was remitted back to AO for passing fresh orders on the limited issue under section 14A by recording satisfaction, for invoking section 14A read with rule 8D.
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Disallowance under section 14A - Expenditure against exempt income - Non-recording of dissatisfaction as regards assessee's claim under section 14A -
Assessee challenged disallowance made by AO under section 14A on the ground of non-recording of dissatisfaction by AO as regards correctness of assessee's claim under section 14A. Held: Assessee was only a proprietorship concern, whereas AO sought to disallow even the directors' remuneration under section 14A, which was not even fact situation of legal jurisprudence. Accordingly, it was clear that AO failed to record satisfaction in terms of section 14A(2) and, therefore, matter was remitted back to AO for passing fresh orders on the limited issue under section 14A by recording satisfaction, for invoking section 14A read with rule 8D.
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2010-11
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