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2022 (4) TMI 954 - AT - Income TaxDisallowance u/s 14A r.w. Rule 8D - Dividend Income received from Mutual Fund - Suo moto disallowance made by assessee - mandation of recording satisfaction before making disallowance - HELD THAT:- While making additional disallowance under section 14A of the Act, the Assessing Officer has not recorded any satisfaction as to how the claim of the assessee was incorrect and had resorted to the provisions under section 14A r.w. Rule 8D As against the voluntary disallowance made under section 14A of the Act by the assessee, the Assessing Officer has not recorded any satisfaction as to how the disallowance voluntarily made by the assessee is not correct and moreover, the AO has not given any findings in the assessment order with regard to the correctness in respect of expenditure incurred to earn exempt income. DR could not controvert the decision of the Hon’ble Supreme Court in the case of Maxopp Investment Ltd. v. CIT [2018 (3) TMI 805 - SUPREME COURT] which was followed by the Coordinate Benches of the Tribunal in the above cases to decide the issue in favour of the assessee. Thus, respectfully following the decision of the Coordinate Benches of the Tribunal in the case of Shriram Capital Limited [2022 (4) TMI 868 - ITAT CHENNAI] as well as the decision of the Hon’ble Supreme Court in the case of Maxopp Investment Ltd. v. CIT (supra), we hold that the Assessing Officer was not justified in making disallowance under section 14A of the Act. Thus, the ground raised by the assessee is allowed.
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