TaxTMI 
TaxTMI 
2018 (3) TMI 1399
X X X X Extracts X X X X
X X X X Extracts X X X X
.... by the Revenue against the order dated 14/08/2014 passed by CIT(A)-V, New Delhi. 2. The grounds of appeal are as under:- 1. " On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in deleting the disallowance of Rs. 6,47,21,925/- made by the A.O. u/s 14A in normal computation as well as under special provisions of the Act by ignoring the fact that expenses relatable to ea....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... income which does not form part of the total income under this Act and held that this is a fit case for invoking the provisions of Section 14A(2) of the I.T Act 1961 and to compute the expenses in accordance with the Rule 8D of the Income Tax Rules 1962. 4. Being aggrieved by the assessment order the assessee filed appeal before the CIT(A). The CIT(A) allowed the appeal of the assessee. 5. The ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....se expenses it is evident that these are not related to earning of the exempt income and therefore cannot be subjected to disallowance in terms of section 14A of the Act. The other argument of the appellant is that in terms of section 14A (2) the AO is mandated to determine the expenses incurred in relation to exempt income in terms of the method prescribed under Rule 8D only if the AO is not sati....
X X X X Extracts X X X X
X X X X Extracts X X X X
....is imperative for the AO to record his satisfaction with regard to the correctness of the assessee's claim with regard to Section 14A(2) of the IT Act, before embarking upon application of Rule 8D(2)(ii). Additionally, it is also seen that in the facts of the case while the assessee has made a suo motu disallowance of Rs. 3,43,030/- but then the balance expense of Rs. 5,18,810/- cannot be treated ....