2015 (7) TMI 1213 - AT - Income Tax

Addition u/s 14A - assessee s contention is that the A.O. has not recorded satisfaction as required u/s 14A - Held that - We find that the A.O. at para 3 has recorded such satisfaction. It is not specified in the Act as to how a satisfaction should be recorded. Thus, this ground is without merit. Expenditure incurred for purpose of earning dividend - Held that - Assessee has no other business and its entire income earned is from dividend and the expenditure in question is relatable and was incurred for the purpose of earning dividend. Appeal filed by assessee dismissed

Summary

Issues: Appeal against order of Ld. CIT(A) for Assessment Year 2010-11

In this judgment by the Appellate Tribunal ITAT Delhi, the appeal was filed by the assessee against the order of the Ld. CIT(A) III, New Delhi, dated 10.11.2014 for the Assessment Year 2010-11. The key issue in this case was the satisfaction recorded by the Assessing Officer (A.O.) as required under section 14A of the Act. The assessee contended that the A.O. did not record such satisfaction, but the A.O. had indeed recorded such satisfaction as per para 3 of the order. The Tribunal noted that the Act does not specify how such satisfaction should be recorded, and therefore, found the ground raised by the assessee to be without merit.

Another issue raised was regarding the assessee's business activities and the nature of its income. The Ld. D.R. argued that the assessee had no other business and earned its income solely from dividends, with the expenditure in question being incurred for the purpose of earning dividends. Upon reviewing the order of the first appellate authority, the Tribunal found no errors and affirmed the decision. Consequently, the appeal filed by the assessee was dismissed, and the order was pronounced in the open court on 16th July 2015.