2012 (3) TMI 464

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....Shaji P. Jacob (IRS, Addl. Commissioner of Income-tax) ORDER Dr. O. K. Narayanan (Vice-President) This appeal filed by the assessee relates to the assessment year 2008-09. The appeal is directed against the order of the Commissioner of Income-tax(Appeals)-I at Coimbatore passed on 17.10.2011 and arises out of the assessment completed under sec.143(3) of the Income-tax Act, 1961. 2. The grounds....

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....ue. 4. It is the case of the learned CA that the Assessing Officer may invoke the provisions of law stated in sec.14A only after conducting necessary enquiries into the factual aspects of the assessee's case. The learned CA submits that even if the law authorizes the Assessing Officer to make a disallowance on presumptive basis, the necessary enquiries may be conducted by him in the present case.....

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....des in detail. Sec.14A(1) declares the law that the expenditure incurred by the assessee in relation to the income which does not form part of the total income under the Act shall not be allowed as a deduction in computing the taxable income of the assessee. Sec.14A(2) provides for determining the quantum of such expenditure which shall not be allowed as a deduction. That is the machinery provisio....

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....erally speaking, it may even be considered for the purpose of convenience as a deeming provision. When such deeming provision is made on the basis of statutory presumption, the requirement of factual evidence is replaced by statutory presumption and the Assessing Officer has to follow the consequences stated in the statute. It means that even in a case where no expenditure is stated to have been i....