TaxTMI 
TaxTMI 
2018 (5) TMI 2118
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.... confirming the disallowance made by the learned DCIT, Circle 1(1), PUne, u/s 14A; amounting to Rs. 4,53,019/-. The learned CIT(A)-1, Pune ought to have appreciated that the said disallowance is without any real satisfaction as required u/s 14A of the ITA, 1961. 2. Alternatively and without prejudice, the disallowance u/s 14A made by the learned I-T authorities may please be restricted at some reasonable estimate levels, as submitted before the I-T authorities. 3. The issue raised in the present appeal is against disallowance made under section 14A of the Act at Rs. 4,53,019/-. The assessee is aggrieved by the order of Assessing Officer in making aforesaid disallowance without recording satisfaction in line with provisions of section 14A....
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....er section 14A of the Act was not worked out. The assessee on without prejudice basis, worked out the disallowance at Rs. 4,53,019/- under Rule 8D of the Rules. However, it was mentioned by the assessee that at best, disallowance of Rs. 3,000/- may be made. The contention of assessee was found to be not satisfactory and the Assessing Officer disallowed sum of Rs. 4,53,019/- under section 14A of the Act read with Rule 8D of the Rules. 8. The CIT(A) upheld the disallowance made by the Assessing Officer rejecting the contention of assessee that in view of non-recording of satisfaction by the Assessing Officer, there was no merit in the disallowance made. 9. The requirement of section 14A(1) of the Act is that in case where the assessee has e....
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....tentions and perused the record. The Assessing Officer while passing the assessment order in para 10 had observed that the assessee had earned significant amount of tax free dividends and in the computation of income, the assessee has disallowed sum of Rs. 50 lakhs under section 14A of the Act. Then, reference is made to the Note filed by the assessee on expenditure disallowable under section 14A of the Act. The Assessing Officer thereafter, takes note of the contents of said explanation and observed as under:- "I have gone through the submissions made by the assessee. It is observed that apart from investments in the overseas subsidiaries (where there is no tax-free income since the dividend is also taxable) the investments made by the a....
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....ew could have been taken for the assessment year 2002-03. Sub-sections (2) and (3) of section 14A of the Act read with rule 8D of the Rules merely prescribe a formula for determination of expenditure incurred in relation to income which does not form part of the total income under the Act in a situation where the Assessing Officer is not satisfied with the claim of the assessee. Whether such determination is to be made on application of the formula prescribed under rule 8D or in the best judgment of the Assessing Officer, what the law postulates is the requirement of a satisfaction in the Assessing Officer that having regard to the accounts of the assessee, as placed before him, it is not possible to generate the requisite satisfaction with....