9911796707
TMI Blog2023 (7) TMI 672X X X X Extracts X X X X X X X X Extracts X X X X ..... 14A was not correct. It will be in those cases where the assessee in his return has himself apportioned but the AO was not accepting the said apportionment. In that eventuality, it will have to record its satisfaction to this effect. Further, while recording such a satisfaction, nature of loan taken by the purchasing the shares/making the investment in shares is to be examined by the AO - We direct AO to delete the addition - Decided in favour of assessee. - ITA No. 8253/DEL/2018 - - - Dated:- 7-7-2023 - SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER For the Assessee : Shri Ved Jain, Adv Ms. Supriya Mehta, CA For the Department : Shri M.K. Pandey, Sr. DR ORDER PER N. K. BILLAIYA, AC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee s claim that no expenses were incurred for earning tax free income. It is the say of the ld. counsel for the assessee that the Assessing Officer has nowhere recorded his satisfaction and has simply placed reliance on Circular No. 5/2014. Strong reliance was placed on several judicial decisions. 8. Per contra, the ld. DR stated that by observing and referring to CBDT Circular No. 5/2014, the Assessing Officer has given a satisfaction that it not necessary to have exempt income for making disallowance u/s 14A r.w.r 8D of the Act. The ld. DR strongly supported the findings of the Assessing Officer. 9. We have carefully considered the orders of the authorities below. We find force in the contention of the ld. counsel for the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reasons for doing so. The above judgment is affirmed by recent judgement of Apex Court in the case of Maxopp Investment Ltd. Versus Commissioner of Income Tax, New Delhi 2018 (3) TMI 805 -SUPREME COURT OF INDIA wherein it has been held that: 41) Having regard to the language of Section 14A(2) of the Act, read with Rule 80 of the Rules, we also make it clear that before applying the theory of apportionment, the AO needs to record satisfaction that having regard to the kind of the assessee, suo mota disallowance under Section 14A was not correct. It will be in those cases where the assessee in his return has himself apportioned but the AO was not accepting the said apportionment. In that eventuality, it will have to record its sa ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
