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2020 (1) TMI 81 - ITAT MUMBAIDisallowance u/s 14A - assessee has made suo moto disallowance - HELD THAT:- Assessee had offered suo-moto disallowance in its return of income, the basis of which was submitted to Ld.AO during assessment proceedings. However, Ld. AO did not consider the same and rejected the methodology adopted by the assessee to arrive at the said disallowance, having regards to the accounts of the assessee. It was incumbent on the part of Ld. AO to arrive at judicious and objective satisfaction as to why the disallowance offered / computed by the assessee was not acceptable. In para-5 of quantum assessment order, Ld. AO has merely recorded a fact of nonsatisfaction without adducing cogent reasons / elaborations as to why the methodology adopted by the assessee was not acceptable. Reliance could be placed on the recent decision of Hon’ble Supreme Court in Maxopp Investment Ltd. V/s CIT [2018 (3) TMI 805 - SUPREME COURT] wherein it has categorically been held that recording of satisfaction is a pre-requisite before invoking disallowance u/s 14A r.w.r. 8D. Thus we delete the additional disallowance as made by Ld. AO in the quantum assessment order. The appeal stands allowed.
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