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TMI Blog2019 (2) TMI 819X X X X Extracts X X X X X X X X Extracts X X X X ..... id fact of nonsatisfaction in terms of Section 14A(2) of the Act, invocation of Rule 8D is not permissible. - INCOME TAX APPEAL NO. 1564 OF 2016 - - - Dated:- 6-2-2019 - AKIL KURESHI M.S. SANKLECHA, JJ. Mr. Tejveer Singh for the appellant Mr. Madhur Agarwal I/b Atul Jasani for the respondent P.C. 1. This Appeal under Section 260A of the Income Tax Act, 1961 (the Act) challe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he facts and in the circumstances of the case and in law, the Tribunal was right in deleting addition of ₹ 1,10,72,191/being disallowance made u/s 14A r/w Rule 8D, without giving the AO opportunity to remove any defect, if at all caused by non-mention of the satisfaction. Any such requirement was wrongly read by the Tribunal ? 3. Regarding question nos. (a) and (b) : (a) It is an agr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h would warrant to take a different view from that taken in order dated 24th October, 2016 by this Court on identical issues. (d) In the above view, for the reasons indicated in our order dated 24th October, 2016, the questions as proposed do not give rise to any substantial question of law. Thus, not entertained. 4. Regarding question no.(c) : (a) In its return of income, the respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpt income by the respondent. This exercise not having been carried out by the Assessing Officer before applying Rule 8D of the Income Tax Rules, the disallowance of expenditure to earn exempt income cannot be sustained. (d) This issue is no longer res integra as the Apex Court in Gorej Boyce Mfg. Co. Ltd. Vs. Dy. CIT, 394 ITR 449 decided the issue in favour of the respondent. In the abov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed where the suo moto disallowance made by the respondent assessee is not found to be satisfactory by the Assessing Officer having regard to the accounts of the assessee. In the absence of recording the aforesaid fact of nonsatisfaction in terms of Section 14A(2) of the Act, invocation of Rule 8D is not permissible. (e) Therefore, in view of the above decision of the Apex Court, this question a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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