TaxTMI 
TaxTMI 
2018 (5) TMI 2118
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....e learned CIT(A)-1, Pune erred in law and on facts in 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....
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....ed exempt income in its return of income, but however disallowance under 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 require....
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....5.01.2018. The Tribunal in this regard, held as under:- "34. We have heard the rival contentions 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 subsidiar....
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....T & Anr. (2017) 394 ITR 449 (SC). "37. We do not see how in the aforesaid fact situation a different view 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....
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....ord necessary satisfaction as to why suo moto disallowance made by the assessee was not correct and in the absence of the same and applying the ratio laid down by the Hon'ble Supreme Court in Godrej & Boyce Manufacturing Company Ltd. Vs. DCIT (supra) and in Maxopp Investment Ltd. Vs. CIT (supra), we find no merit in the disallowance worked out by the Assessing Officer by invoking provisions of Rule 8D(iii) of the Rules. In the absence of recording of satisfaction under section 14A(2) of the Act, the action of Assessing Officer is not as per law and the same is reversed. Consequently, the ground of appeal No.2 raised by the assessee is thus, allowed." 11. The said proposition has been laid down by the Pune Bench of Tribunal in line wi....