Tribunal remands issue for fresh adjudication, emphasizes speaking order & natural justice principles. Decision for A.Y. 2008-09 applies to subsequent years.

The Tribunal remanded the issue to the AO for fresh adjudication, emphasizing the need for a speaking order and principles of natural justice. The decision for A.Y. 2008-09 was deemed applicable to subsequent years, allowing all appeals of the Assessee for statistical purposes.

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Issues:
- Disallowance u/s.14A r.w.r. 8D of the I.T. Rules, 1962.

Analysis:
1. The Assessee filed four appeals against separate orders of CIT(A)-6,9 Pune, for Assessment Years 2008-09 to 2011-12, all involving disallowance u/s.14A r.w.r. 8D of the I.T. Rules, 1962.
2. The Assessee challenged the disallowance upheld by CIT(A) for A.Y. 2008-09, arguing that the disallowance should not exceed &8377; 3004/-, emphasizing no case for higher disallowance and that no additional expenditure beyond the already disallowed amount should be considered.
3. The AO made disallowances for all years under section 14A read with Rule 8D(2)(iii) of the Rules, rejecting the Assessee's claim of &8377; 3,004/- expenditure for A.Y. 2008-09 and making additional disallowances.
4. CIT(A) confirmed the disallowances, leading to the Assessee's appeal, questioning the excessive disallowance.
5. The Assessee raised additional grounds challenging the lack of AO's satisfaction before invoking section 14A, but the Tribunal found the AO had rightly assumed jurisdiction under Rule 8D(2)(iii) of the I.T. Rules, 1962.
6. On merits, the Assessee argued that mechanical quantification of disallowance is not universally sustainable, citing a jurisdictional High Court judgment and advocating for ad-hoc disallowance based on the number of transactions.
7. The Tribunal found the judgment applicable to the Assessee's case and remanded the issue to the AO for fresh adjudication, emphasizing the need for a speaking order and principles of natural justice.
8. The Tribunal's decision for A.Y. 2008-09 was deemed applicable to subsequent years (A.Yrs. 2009-10 to 2011-12), allowing all appeals of the Assessee for statistical purposes.

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