2014 (7) TMI 1286

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....ambit Mishra, D.R. ORDER Per Sanjay Garg, Judicial Member: The present appeal has been filed by the assessee against the order of the Commissioner of Income Tax (Appeals) [(hereinafter referred to as CIT(A)] dated 13.12.11 relevant to assessment year 2008-09. 2. The sole ground raised in the appeal is with regard to the confirmation of addition of Rs. 10,49,901/- made by the ld. CIT(A)....

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....strative and managerial expenses. He therefore worked out the said expenditure by applying rule under 8D.(iii) of the I.T. rules at Rs. 1049901/- and disallowed the same. 4. In appeal before the CIT(A), it was submitted by the representative of the assessee that the AO had not given any reasoning for rejecting the assessee's suomoto working of disallowance u/s14A at Rs. 4,99,614/-. However, the....

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....of the Income Tax Rules for determining the amount of expenditure in relation to exempt income, if, the AO is not satisfied with the correctness of the claim made by the assessee in respect of such expenditure. The satisfaction of the Assessing Officer has to be arrived at, having regard to the accounts of the assessee. Sub section (2) does not ipso facto enable the Assessing Officer to apply the ....

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.... the assessee. 6. However, a perusal of the assessment order reveals that the AO has not followed the guidelines of objective satisfaction as laid down by the hon'ble Bombay high Court in the case of Godrej & Boyce (supra) while making the disallowance . He without recording any reasoning for his dissatisfaction with regard to the working/claim of the assessee, straightway applied Rule 8D again....