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2019 (3) TMI 215 - ITAT PUNEAddition u/s. 14A r.w. Rule 8D - no satisfaction has been recorded by the CIT (A) as envisaged u/s. 14A (2) & (3) - Power of CIT(A) regrading enhancement - fresh source that has not been subject of assessment - HELD THAT:- In the instant case we observe that the Commissioner of Income Tax (Appeals) before making disallowance u/s. 14A has discussed various judicial pronouncements but has not recorded his satisfaction as to why disallowance is warranted. AR has further demonstrated from the Balance Sheet of assessee as on 31-03-2011 that own funds to the assessee are much more than the investment made. After considering the documents on record and various decisions, we are of considered view that the Commissioner of Income Tax (Appeals) has erred in exceeding his jurisdiction by enhancing income from a fresh source that was neither part of return of income nor touched upon by the Assessing Officer in proceeding u/s. 143(3) of the Act. Consequently, the impugned order is modified and enhancement made by Commissioner of Income Tax (Appeals) is set aside. - Decided in favour of assessee.
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