TaxTMI 
TaxTMI 
2019 (11) TMI 928
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....015 by the learned CIT(A)-22 is erroneous in nature as he has confirmed the order of Ld. AO who made additions u/s 14A in the total income of the assessee company. 2. That addition u/s 14A of the Act was made by making disallowance of Rs. 7,10,476/- against the total expenditure of Rs. 8,69,681/- which is quite unjustified and is bad in law. 3. That the learned CIT(A) has erred in law by affirming the disallowance made by AO amounting to Rs. 7,10,476/- over and above the disallowance already made by the assessee company under section 14A of the Act, ignoring the basic fact that no expenses had been incurred for earning exempt income. [A.1] The assessee also filed an additional grounds of appeal during appellate proceedi....
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....hat all the expenses debited in a profit and loss account stood entirely disallowed as a result of aforesaid disallowance of Rs. 7,10,476/- made by the Assessing Officer and pleaded that this was not just. The assessee also relied on several decided precedents during appellate proceedings before the learned CIT(A), which included the following decisions:- 1. Wimco Seedings Ltd. Vs. DCIT. 107 ITD 267 (Del) 2. Impulse (India) (P) Ltd. vs. ACIT, 22 SOT 368(Del). 3. Maruti Udyog Ltd. vs. DCIT, 92 ITD 119 (Del). 4. CIT vs. Walfort Share and Stock Brokers (P) Ltd. 326 ITR 1 (SC). 5. CIT vs. Calcutta Agency Ltd. [195] 19 ITR 191. 6. Saraswati Industrial Syndicate Ltd. vs. CIT [1982] 136 ITR 361....
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....d with the correctness of the quantum of disallowance suo moto made by the assessee under section 14A of Income Tax Act. She further contended that the Rule 8D of Income Tax Rules does not come into operation automatically. She further submitted that Rule 8D is triggered only when the Assessing Officer is not satisfied with correctness of the assessee's claim on account of suo moto disallowance made by the assessee under section 14A. She further submitted that the Assessing Officer has not expressed, in speaking manner, the reasons in detail for his dissatisfaction with correctness of the claim of the assessee regarding suo moto disallowance under section 14A of the Income Tact Act. In view of these facts, she contended that the further dis....
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....ncome Tax Rules; he has not passed speaking order as to why he is not satisfied with the correctness of the claim of the assessee. He has not pointed out the defects or inaccuracies in the computation of suo moto disallowance made by the assessee under section 14A of I.T. Act, in speaking manner. He has also not given detailed reasons, in a speaking manner, why he is not satisfied with the correctness of the assessee's claim in respect of suo moto disallowance made by the assessee under section 14A of Income Tax Act. The Assessing Officer has merely stated in a cryptic summary and non speaking manner that the... disallowance worked out of assessee at Rs. 1,59,205/- "...is not as per provisions on Rule 8D and is therefore not correct." He se....
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.... such method as may be prescribed, if the Assessing Officer, having regard to the accounts of the assessee, is not satisfied with the correctness of the claim of the assessee in respect of such expenditure in relation to income which does not form part of the total income 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 no power to correct such jurisdictional errors. The coterminous powers vested....