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TMI Blog2016 (7) TMI 1658X X X X Extracts X X X X X X X X Extracts X X X X ..... nder Rule 8D, this Tribunal is of the considered opinion that the AO was not satisfied with regard to the claim made by the assessee. Therefore, the Assessing Officer has to recompute the disallowance by applying the procedure prescribed under Rule 8D. Either sec. 14A or Rule 8D does not prescribe any form for the purpose of recording satisfaction. The satisfaction has to be inferred from the observation made by the Assessing Officer in the computation made. When the Assessing Officer found there was a direct expenditure relating to earning of the exempted income and the assessee has not computed the disallowance under Rule 8D, this Tribunal is of the considered opinion that the Assessing Officer was not satisfied with regard to the clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... JCIT. ORDER PER N.R.S. GANESAN, JUDICIAL MEMBER Both the appeal of the assessee and the Revenue are directed against the order of the Commissioner of Income-tax (Appeals)-15, Chennai, dated 24.9.2015 for assessment year 2012-13. 2. Let us first take up the assessee s appeal I.T.A. No. 406/Mds/2016. 3. The only issue arises for consideration is disallowance of ₹ 2,51,498/-. 4. Shri R. Sivaraman, ld. Counsel for the assessee submitted that during the year under consideration the assessee has received dividend of ₹ 41,38,052/-. The assessee has disallowed expenses u/s 14A to the extent of ₹ 67,829/-. The Assessing Officer has computed the disallowance u/s 14A r.w.r 8D to the extent of ₹ 2,51,498 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n record. The first objection of the assessee is that no satisfaction was recorded by the Assessing Officer for the purpose of making disallowance under Rule 8D. Either sec. 14A or Rule 8D does not prescribe any form for the purpose of recording satisfaction. The satisfaction has to be inferred from the observation made by the Assessing Officer in the computation made. When the Assessing Officer found there was a direct expenditure relating to earning of the exempted income and the assessee has not computed the disallowance under Rule 8D, this Tribunal is of the considered opinion that the Assessing Officer was not satisfied with regard to the claim made by the assessee. Therefore, the Assessing Officer has to recompute the disallowance by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t not to have allowed the claim of the assessee. 9. On the contrary, Shri R. Sivaraman, ld. Counsel for the assessee submitted that Shriram Ownership Trust is an independent Trust and its logo was used by the assessee in its business. The payment was made for the purpose of using the logo on turnover basis, therefore, the CIT(A) has rightly allowed the claim of the assessee as revenue expenditure. 10. We have considered the rival submissions on either side and also perused the material available on record. Shriram Ownership Trust is a Trust by itself, therefore, its logo cannot be used by any other concern. The object of the Trust is not to do business. The assessee-company was established for the purpose of business. When the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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