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2019 (7) TMI 755 - GUJARAT HIGH COURTDisallowance u/s 14A r.w.r. 8D - AO has not shown any dissatisfaction with the disallowance u/s 14A read with Rule 8D offered suo motu by the assessee - HELD THAT:- As held in the case of Pr. CIT Vs. Gujarat State Fertilizer and Chemicals Ltd. [2019 (7) TMI 473 - GUJARAT HIGH COURT] the language of Section 14A of the Act is plain and clear. Before invoking Rule 8D, the AO is obliged to indicate that having regard to the accounts of the assessee, he is not satisfied with the correctness of the claim of the assessee in respect of such expenditure in relation to the income which does not form part of the total income under the Act. The condition precedent of recording the requisite satisfaction which is a safeguard provided in Section 14A should not be overlooked before going to Rule 8. In such circumstances court are not impressed by the submission canvassed on behalf of the Revenue that once there are mixed funds, Rule 8 would be attracted automatically. In view of the above, this appeal fails and is hereby dismissed. - Decided against revenue
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