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2018 (12) TMI 1392 - HC - Income TaxDisallowance u/s 14A - expenses attributable to exempt income - Non recording of satisfaction - Held that:- Assessment order is silent and does not examine and discuss the relevant facts relating to disallowance under Section 14A. The order proceeds to compute disallowance under clause (ii) of Rule 8D of the Income Tax Rules, 1962 without recording necessary satisfaction under Section 14A of the Act. The Assessing Officer had erroneously assumed that Rule 8D applies to all cases of exempt income, without examining and deciding whether or not the deduction or disallowance, if any, made by the assessee was satisfactory and proper Disallowance made by the Assessing Officer by simply invoking clause (ii) to Rule 8D without recording any satisfaction in terms of Section 14A would not be in accordance with and as per the terms of the statute. - decided in favour of assessee.
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