https://www.taxtmi.com/caselaws?id=306282 A disallowance under section 14A read with rule 8D(2)(iii) cannot be made unless the Assessing Officer first records dissatisfaction, on the basis of the accounts, with the assessee's claim that no expenditure was incurred to earn exempt dividend income; as no such satisfaction was recorded, the disallowance was deleted. On section 40(a)(ii), the Tribunal followed binding Bombay HC authority to hold that the words "any rate or tax" do not include cess, and that education cess and higher and secondary education cess are therefore allowable deductions. The appeal succeeded to the extent of deleting the section 14A addition and allowing deduction of cess. en-us Wed, 01 Sep 2021 00:00:00 +0530 Fri, 20 Jan 2023 07:16:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=306282 A disallowance under section 14A read with rule 8D(2)(iii) cannot be made unless the Assessing Officer first records dissatisfaction, on the basis of the accounts, with the assessee's claim that no expenditure was incurred to earn exempt dividend income; as no such satisfaction was recorded, the disallowance was deleted. On section 40(a)(ii), the Tribunal followed binding Bombay HC authority to hold that the words "any rate or tax" do not include cess, and that education cess and higher and secondary education cess are therefore allowable deductions. The appeal succeeded to the extent of deleting the section 14A addition and allowing deduction of cess. Case-Laws Income Tax Wed, 01 Sep 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=306282