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TMI Blog2014 (6) TMI 979X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee by the decision of ITAT in assessee’s own case for AY 2007-08 wherein the ITAT set aside the matter to the file of the Assessing Officer wherein held in case, the AO is satisfied with the claim of the assessee with regard to the expenditure or no expenditure, as the case may be, the AO is to accept the claim of the assessee insofar as the quantum of disallowance under s. 14A is concerned. In such eventuality, the AO cannot embark upon a determination of the amount of expenditure for the purposes of s. 14A(1). In case, the AO is not, on the basis of objective criteria and after giving the assessee a reasonable opportunity, satisfied with the correctness of the claim of the assessee, he shall have to reject the claim and state the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at he allowed the relief to the assessee following the above two decisions of ITAT. Since the issue is settled by the decision of ITAT in assessee s own case in earlier years, we do not find any infirmity in the order of learned CIT(A) wherein he only followed the order of the ITAT for earlier years. We, therefore, uphold the order of learned CIT(A) on this point and dismiss the Revenue s appeal. ITA No.1941/Del/2013 Assessee s appeal :- 4. The only ground raised by the assessee in this appeal is against the disallowance under Section 14A made by the Assessing Officer by applying the provisions of Rule 8D. 5. We have heard the arguments of both the sides and perused relevant material placed before us. We find this issue also to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4A(1) (as it now stands) as also in its initial Avatar as s. 14A. It is only the prescription with regard to the method of determining such expenditure which is new and which will operate prospectively. In other words, s. 14A, even prior to the introduction of sub-ss. (2) and (3) would require the AO to first reject the claim of the assessee with regard to the extent of such expenditure and such rejection must be for disclosed cogent reasons. It is then that the question of determination of such expenditure by the AO would arise. The requirement of adopting a specific method of determining such expenditure has been introduced by virtue of sub-s. (2) of s. 14A. Prior to that, the assessing authority was free to adopt any reasonable and accep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regard to the expenditure or no expenditure, as the case may be, the AO is to accept the claim of the assessee insofar as the quantum of disallowance under s. 14A is concerned. In such eventuality, the AO cannot embark upon a determination of the amount of expenditure for the purposes of s. 14A(1). In case, the AO is not, on the basis of objective criteria and after giving the assessee a reasonable opportunity, satisfied with the correctness of the claim of the assessee, he shall have to reject the claim and state the reasons for doing so. Having done so, the AO will have to determine the amount of expenditure incurred in relation to income which does not form part of the total income under the said Act. He is required to do so on the basis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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