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2017 (11) TMI 1220 - AT - Income TaxDisallowance u/s 14A - non recording of the satisfaction by the Assessing Officer - Held that:- When the pre-requisite condition for making disallowance u/s 14A, being the recording of the satisfaction by the Assessing Officer not accepting the correctness of the assessee’s claim, was lacking, the ld. CIT(A) should not have come to the stage of computation of the amount of disallowance. As the jurisdictional condition for making disallowance u/s 14A was wanting, the ld. CIT(A) ought to have deleted the entire addition instead of restricting it to a lower level. The Revenue appears to have accepted the ld. CIT(A)’s order on the question of not recording of satisfaction by the AO inasmuch as nothing has been brought to our notice by the ld. DR to demonstrate that the Department has preferred any appeal on this score before the tribunal. The picture which, therefore, emerges is that the Assessing Officer did not record any satisfaction as stipulated in subsection (2) of section 14A and as the sequitur, the disallowance u/s 14A could not have been made - Decided in favour of assessee Deferred revenue expenditure addition - deduction written off during the year - CIT-A following the view taken in earlier years in the assessee’s own case held that the assessee should have claimed deduction at 1/10th of the expenditure for the present year and the next two year - Held that:- CIT(A) followed the view taken by him in the assessee’s own case for two preceding years. There is nothing on record to suggest that such a view has been altered in the further appeal. The assessee’s contention about bringing temporary structure into place during the year warranting full deduction, is not backed by any evidence whatsoever. In the given circumstances, we uphold the view taken by the ld. CIT(A) on this score. This ground is not allowed.
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