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TMI Blog2014 (8) TMI 722X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 : 1 The Commissioner of Income-tax (Appeals) has erred in confirming the action of the Assessing Officer of disallowing a further sum of Rs. 11,62,077/- u/s. 14A by applying Rule 8D of the Income-tax Rules, 1962. 1 : 2 The Appellant submits that considering the facts and circumstances of its case and the law prevailing on the subject no further disallowance u/s. 14A of the Income- tax Act, 1961 is called for and the stand taken by the Assessing Officer in this regard is incorrect to say the least and the Commissioner of Income-tax (Appeals) ought to have held as such. 1: 3 The Appellant submits that the Assessing Officer be directed to delete the additional disallowance made by him and to re-compute its total income accordingly. 2: 0 R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3:2 The Appellant submits that considering the facts and circumstances of its case and the law prevailing on the subject no further addition in respect of the write back from the Provision for the Non - Performing Assets, was called for and the stand taken by the Assessing Officer in this regard is erroneous and not in accordance with law and the Commissioner of Income-tax (Appeals) ought to have held as such. 3 : 3 The Appellant submits that the Assessing Officer be directed to delete the addition so made by him and to re-compute its total income accordingly. 4: 0 Re.: Non-reduction of write back from the provision for Non- Performing Assets amounting to Rs. 20,05,000/-. 4: 1 The Commissioner of Income-tax (Appeals) has erred in not dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) confirmed the disallowance so made by the AO observing that since the assessment year involved was A.Y. 2008-09, so the disallowance u/s 14A had to be worked out by the AO as per rule 8D of the I.T. Rules. Aggrieved against the order of the ld. CIT(A), the assessee has come in appeal before us. The stand of the assessee is that the AO did not consider the suomoto working of the assessee of the disallowance of Rs. 10,17,044/- and straightway applied rule 8D without recording any dissatisfaction against the said working. 5. We have considered the rival submissions of the ld. representatives of the parties. It may be observed that in the case of 'Godrej & Boyce Manufacturing Co. Ltd.' 328 ITR 81, the Hon'ble Bombay High Court has h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e AO has not followed the guidelines of objective satisfaction as laid down by the Hon'ble Bombay high Court in the case of Godrej & Boyce (supra) while making the disallowance . He without recording any reasoning for his dissatisfaction with regard to the working/claim of the assessee, straightway applied Rule 8D against the mandate of the provisions of section 14A of the Income Tax Act. The ld. CIT(A) also ignored the mandate of the provisions of section 14 A, while confirming the disallowance. 7. So keeping in view of the overall facts and circumstances of the case, we restore this issue back to the file of the AO with a direction that the AO will give opportunity to the assessee to place on record all the relevant facts including its a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue and against the assessee. Hence, respectfully following the decision of the Tribunal in the own case of the assessee for the earlier assessment years this issue is decided against the assessee. Ground No.3 & 4 9. Vide ground No.3, the assessee has agitated the confirmation of addition in respect of amount written back in relation to non performing assets. Vide ground No.4, the assessee has agitated the addition of the said amount to the profit and loss account for the relevant assessment year contending that the amount in question has already been added to the profit and loss account during the previous assessment year. He has further contended that the provision for the said amount for non performing assets has already been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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