2019 (5) TMI 25

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.... nature of business is online market/auction for steel and other products and also for arranging financial loans etc. The issues that arise for our adjudication in this appeal are (a) disallowance u/s 14A of the Act r.w.r. 8D; (b) disallowance of provision of leave encashment; (c) disallowance of provision for leave encashment while computing book profit u/s 115JB of the Act; & (d) disallowance of provision for bonus, gratuity and continuity bonus while computing book profits u/s 115JB of the Act. 3. We have heard Shri A. Mansinka, the ld. Counsel for the assessee and Shri Robin Choudhury, Sr. DR on behalf of the Revenue. On careful consideration of the facts and circumstances of the case, perusal of the papers on record, orders of the a....

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....Assessing Officer's comment that the assessee did not to maintain separate books of accounts, for the expenses incurred in relation to earning of income not includible in the 'total income' would tantamount to AO being of the opinion that the assessee should maintain separate books for this purpose. This is not required as per law. The AO has committed an error in assuming so. Hence this ground on which the AO has not accepted the suo motu disallowance made by the assessee u/s 14A of the Act is wrong. Thus, as the Assessing Officer has not recorded his satisfaction before rejecting the suo-moto disallowance made by the assessee u/s 14A of the Act, we delete this disallowance made by the AO under Rule 8D of the Rules and allow ground no.1 of....