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2014 (12) TMI 260 - HC - Income TaxCorrectness of claim to be recorded by AO u/s 14A - Whether the Tribunal was right in holding that the AO had accorded implicit satisfaction u/s 14A(2) which got converted into explicit satisfaction by the reason on discussion in the order passed by the CIT(A) - Held that:- In Maxopp Investment Ltd. versus CIT [2011 (11) TMI 267 - Delhi High Court] it was held that sub-section (2) to Section 14A mandates and requires the AO to record his satisfaction on the correctness of the claim made by the assessee in respect of the expenditure in relation to the income, which does not form part of the total income before embarking on and applying Rule 8D of the Income Tax Rules, 1962 - during the course of remand proceedings, the AO will go into the question of disallowance u/s 14A of the Act made by the assessee and after examination, if he is not satisfied with the claim, he can proceed as per law - the observations of the Tribunal that there was implicit satisfaction of the AO and explicit satisfaction of the CIT(A) is to be set aside – though it was kept open to the AO to examine the claim of the assessee as per Section 14A of the Act and proceed in accordance with law - Decided in favour of assessee.
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