2016 (1) TMI 1410

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....nbsp; This is an appeal filed by the Assessee against the order dated 07.11.2012 of the Ld. CIT(A)-V, New Delhi. 2. Brief facts of the case are that the assessee company, a Non Banking Financial Company, in the relevant assessment year, was engaged in the business of Inter-Corporate deposits and investments of surplus funds. The assessee had filed return of income declaring loss of Rs. 3,86,....

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.... to wherein it has been held that AO has to record his satisfaction first regarding assessee's claim being not acceptable and then only he can embark upon determination of the amount of expenditure for the purposes of Section 14A. Ld. CIT(A) observed that though assessee had not provided as to what was the basis for arriving at sum of Rs. 25,000/- but at the same time AO had also not recorded his ....

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....ons of Section 14A of the Income-Tax Act, 1961 read together with Rule 8D of the Income Tax Rules, 1962 as against Rs. 25,000/- estimated by the Appellant Company." 5. Ld. Counsel submitted that admittedly assessing officer had not recorded the satisfaction as contemplated u/s 14A(2) and this basic function assigned to a particular authority by legislature could not be usurped by higher authori....

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....ncome under this Act." 8. A bare reading of the aforementioned provision makes it clear that the satisfaction is to be recorded by assessing officer and by no other authority. Under section 251 Ld. CIT(A) in an appeal against an order of assessment is empowered to confirm, reduce, enhance or annul the assessment but if the assessment order suffers from jurisdictional errors then Ld. CIT(A) has ....