2016 (8) TMI 1234

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....cates For the Respondent : Mr.Rahul Chaudhary, Sr.Standing Counsel and Mr.Raghuvendra Singh, Jr.Standing Counsel O R D E R 1. Admit. 2. With the consent of counsels for the parties appeal was heard. 3. The following question of law arises for consideration of this court: "Did the ITAT fall into error in upholding the decision of the lower authority viz-a-viz the disallowanc....

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.... on the other hand urged that the assessee carries on business and in the course of such business he engaged an accountant who was also tasked with the job of looking after the accounts and investments which yielded a sum of Rs. 10,87,898/-. 5. The assesee relied upon the judgment of this court in Commissioner of Income Tax vs. Taikisha Engineering Private Limited 370 ITR 338 (Del) and the ITAT....

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....1) is satisfied. Thus, section 14A (2) of the Act and rule 8D (1) in unison and affirmatively record that the computation or disallowance made by the assessee or claim that no expenditure was incurred to earn exempt income must be examined with reference to the accounts, and only and when the explanation/claim of the assessee is not satisfactory, computation under subrule (2) to rule 8D of the Rul....