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2014 (6) TMI 979 - AT - Income TaxDisallowance of Commission paid to Managing Director of assessee company - Held that:- We find this issue to be covered in favour of the assessee by the decision of ITAT in assessee’s own case for AY 2005-06 [2012 (5) TMI 217 - ITAT DELHI] wherein the ITAT decided this issue in favour of the assessee. Since the issue is settled by the decision of ITAT in assessee’s own case in earlier years, we do not find any infirmity in the order of learned CIT(A) in deleting the disallowance Disallowance u/s 14A applying the provisions of Rule 8D - Held that:- We find this issue also to be covered in favour of the assessee by the decision of ITAT in assessee’s own case for AY 2007-08 wherein the ITAT set aside the matter to the file of the Assessing Officer wherein held in case, the AO is satisfied with the claim of the assessee with regard to the expenditure or no expenditure, as the case may be, the AO is to accept the claim of the assessee insofar as the quantum of disallowance under s. 14A is concerned. In such eventuality, the AO cannot embark upon a determination of the amount of expenditure for the purposes of s. 14A(1). In case, the AO is not, on the basis of objective criteria and after giving the assessee a reasonable opportunity, satisfied with the correctness of the claim of the assessee, he shall have to reject the claim and state the reasons for doing so. Having done so, the AO will have to determine the amount of expenditure incurred in relation to income which does not form part of the total income under the said Act. He is required to do so on the basis of a reasonable and acceptable method of apportionment
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