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2016 (5) TMI 949 - HC - Income TaxDisallowance u/s 14A - whether the observations in the decision of Maxopp Investment (2011 (11) TMI 267 - Delhi High Court ) to the effect that the AO has to record reasons as to why the claim of the Assessee in respect of the expenditure incurred for making the investment for the purposes of Section 14A should be discarded was only obiter dicta and therefore not a binding precedent as far as the ITAT was concerned? - ITAT deleted the disallowance - Held that:- Decision of the Maxopp Investment (supra) specific to the issue of AO having to record reasons prior to making a disallowance under Section 14-A of the Act has been consistently followed not only by this Court in subsequent decisions but by the ITAT as well. In any event, the Court is informed that the Revenue's Special Leave Petition against the decision in Maxopp Investment (supra) is pending consideration in the Supreme Court. Apart from the fact that no specific question in that regard has been raised in the memorandum of the present appeal, the Court finds that the AO applied Rule 8D of the Rules after being unable to determine what expenditure was incurred by the Assessee for the purposes of Section 14A. Therefore, remanding the issue to the AO would have served no useful purpose.No substantial question of law arises.
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