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2016 (7) TMI 378 - AT - Income TaxDisallowance u/s 14A - Held that:- As no such satisfaction recorded by the AO for rejecting the disallowance claimed by the assessee and correctness of the same. We find that this issue now stands covered in favour of the assessee and against the revenue by the Tribunal decision in assessee’s own case for the assessment year 2006-07 and even otherwise on the issue of satisfaction, the Hon’ble Kolkata Bench of the Tribunal in the case of REI Agro Ltd. v. Deputy Commissioner of Income-tax, Central Circle-XXVII, Kolkata [2013 (9) TMI 156 - ITAT KOLKATA ] has held that no disallowance u/s 14A can be made if satisfaction is not recorded with reference to the correctness of the action of the assessee.Even otherwise Rule 8D will not apply for the relevant assessment i.e. assessment year 2007-08, the year under consideration as held by Hon’ble Bombay High Court in the case of Godrej & Boyce Manufacturing Co. Ltd. [2010 (8) TMI 77 - BOMBAY HIGH COURT]. In view of the facts and circumstances of the case that there is no satisfaction recorded by the AO about the correctness of the accounts of the assessee for making disallowance u/s 14A of the Act, no further disallowance can be made by the AO. - Decided in favour of assessee Non granting the TDS credit - Held that:- AO has disallowed the claim of the credit for TDS amounting to ₹ 11,95,766/- and credit for TDS as not claimed by the assessee amounting to ₹ 26,10,633/- for the reasons that the TDS certificate were received after filing the return of income. The assessee has filed a copy of rectification letter dated 24.12.2009 addressed to the AO stating that the original TDS certificate mentioning amount of ₹ 26,10,633/- were filed with the AO and also details of TDS claimed for an amount of ₹ 11,95,766/- were filed during the course of hearing before the AO vide letter dated 13.11.2009. In view of the above facts we are of the view that the AO should have allowed credit to the assessee when the assessee has filed rectification petition before him and even the CIT(A) has directed the AO to allow claim of TDS after verifying the same. We direct the AO to allow the claim of TDS amounting to ₹ 11,95,766/- which were filed before him during the course of assessment proceedings and also the TDS certificate received late but filed before him along with the rectification letter dated 24.12.2009 amounting to ₹ 26,10,633/-. We direct the AO to give credit of this TDS amount and decide the claim immediately.- Decided in favour of assessee Charging interest under section 234C - Held that:- We have considered the plea of the assessee and directed the AO while dealing with above grounds to give credit for TDS for ₹ 5,44,05,867/- and also credit for advance ax for an amount of ₹ 1.70 crores. Consequently, interest u/s 234C will be charged after giving credit to these amounts
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