AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2026 (1) TMI 350
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....he facts and circumstances of the case and in law, Hon'ble CIT (A) erred in deleting the addition of Rs. 20,78,791/- made by AO u/s 14A r.w.r 8D by holding that the AO failed to record the satisfaction for invoking section 14A while making the disallowance without considering the fact that the AO in para 5.2 of the order, AO has recorded satisfaction while making the disallowance u/s 14A7 2. Whether in the facts and circumstances of the case and in law, Hon'ble CIT(A) erred in not adding the disallowance of Rs. 20,78,791/- made u/s 14A of the Act to the net profit while computing the book profit for the purpose of Section 115JB of the Act. 3. Whether in the facts and circumstances of the case and in law, Hon'bl....
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....ome. Though the assessee has provided complete details and working for calculating the sum of disallowance of Rs. 48,10,464/- but ld. AO without controverting those submissions and without recording proper satisfaction on the basis of examining the books of accounts and relevant details had made the impugned disallowance. Ld.CIT(A) deleted the disallowance placing reliance on the decision of this Tribunal dated 27.06.2024. We find that the relevant finding of this Tribunal on this issue of disallowance u/s.14A of the Act for A.Y. 2017-18 in ITA No.1413/PUN/2023 order dated 27.06.2024 reads as under : "8. We have considered the rival submissions and perused the records. The assessee company earned dividend income of Rs. 4,33,65,925/....
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....in the case of CIT Vs. Taikisha Engineering India Ltd. reported in 54 taxmann.com 109 (Del.) has held that it is only when voluntary disallowance made by assessee u/s 14A is found to be unsatisfactory on examination of accounts, that AO is entitled and authorized to compute deduction under Rule 8D. Similar view has been taken by the Hon'ble Bombay High Court in the case of Pr. CIT Vs. Reliance Capital Asset Management Ltd. reported in (2018) 400 ITR 217 (Bom.). We are therefore inclined to accept the claim of the Ld. AR that the Ld. AO has not recorded satisfaction as per mandate of law provided under sub-section (2) of section 14A of the Act. Accordingly, the submission of the Ld. DR in this regard is rejected. 8.2 We also do not ....
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....nancial institutions. No adverse comment has been made either by the Ld. AO or by the Ld. CIT(A). The claim of the assessee that in the preceding year suo-moto disallowance made by the assessee has been accepted, has not been refuted by the Revenue. 10. We, therefore, hold that the impugned disallowance of Rs. 33,20,874/- u/s 14A of the Act r.w. Rule 8D is not warranted in the case of assessee. It is hereby deleted." 7. The above finding of this Tribunal stands uncontroverted by ld. DR by placing any binding precedence in its favour. Also the issue raised by the Revenue in Ground No.2 that ld.CIT(A) erred in adding the disallowance of Rs. 20,78,791/- of the Act to the net profit while computing the book profit for the purpose se....
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....has received Form No.3CL issued by DSIR on 05.01.2025 and that was the only requirement which remained to be fulfilled by the assessee before ld.AO. Relevant finding of ld.CIT(A) dealing with disallowance u/s.35(2AB) of the Act and giving relief to the assessee on due consideration of Form No.3CL issued by DSIR on 05.04.2025 reads as under: "8.5 I have perused the additional evidence filed by the appellant and found that it is a copy of Form-3CL issued by DSIR which is the root cause of disallowance made by the Assessing Officer. Further, the said certificate in Form-3CL was issued by DSIR only on 05/01/2025 i.e. after the completion of assessment. Therefore, the appellant could not have filed the same during the assessment proceed....