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2019 (10) TMI 383 - AT - Income TaxDisallowance u/s 14A r.w.r 8D - whether satisfaction as per the provisions of Section 14A has been recorded or not by the AO? - HELD THAT:- Section 14A (2) reads as under 14A(2) - AO shall determine the amount of expenditure incurred in relation to such income which does not form part of the total income under this Act in accordance with such method as may be prescribed, if the Assessing Officer, having regard to the accounts of the assessee, is not satisfied with the correctness of the claim of the assessee in respect of such expenditure in relation to income which does not form part of the total income under this Act. In the instant case, we find that there is no tangible material on record, there is no record of examination of accounts as stipulated under section 14A(2), there is no satisfaction recorded by the Assessing Officer in terms of the expenditure claimed by the assessee, and hence keeping in view the provisions of the Act, the process embarked upon by the assessee and the judicial pronouncements, it is hereby held that the re-computation done by the Assessing Officer in the absence of recording of the satisfaction is liable to be set aside. - Decided in favour of assessee. Disallowance of 1/5th of the expenses of Telephone, Mobile and Car expenses - HELD THAT:- CIT (A) after careful consideration of the facts of the case and the case laws cited by the Ld. AR before him during the hearings held that the personal use of Car and Telephone cannot be ruled out in the case of the assessee in the absence of day to day details with regard to use of telephone and car and held that the disallowance made by the Assessing Officer are very reasonable and cannot be said to be excessive under any circumstances. AR has taken the arguments that have been taken before the Ld. CIT(A) which the Ld. CIT(A) has duly considered and distinguished the case laws. Having gone through the issue in detail, in the peculiar facts and circumstances of the instant case, we hereby decline to interfere with the order of the Ld. CIT(A) on this issue. - Decided against assessee
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