2020 (11) TMI 762

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....ad with Rule 8D of the Income Tax Rules, 1962 (in short 'Rules'). 3. Briefly stated facts are, the assessee, a partnership firm filed its return of income for the year under consideration on 14.09.2012 declared total income of Rs. 17,83,411/-. During the assessment proceedings, the Assessing Officer noticed that in the year under consideration, though, the assessee had earned exempt income by way of dividend amounting to Rs. 99,375/-, however, it has not made any disallowance under section 14A of the Act. After calling upon the assessee to explain as to why disallowance under 14A of the Act should not be computed by applying Rule 8D, the Assessing Officer proceeded to disallow an amount of Rs. 6,17,274/- comprising of disallowance of int....

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....presentative strongly opposed the contentions of the assessee and relied upon the observations of Assessing Officer and learned Commissioner (Appeals). 6. We have considered rival submissions and perused the material available on record. The first issue raised by learned AR is regarding non-recording of satisfaction by the Assessing Officer. Uundisputedly, the assessee has not disallowed any expenditure under section 14A read with Rule 8D in the return of income filed for the year under consideration. That being the case, there is no need for the Assessing Officer to record satisfaction under section 14A(2) of the Act regarding correctness of assessee's computation of disallowance under section 14A of the Act. Therefore, we are unable to....