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2020 (7) TMI 662 - AT - Income TaxDisallowance u/s 14A - Suo moto disallowance by assessee - HELD THAT:- It is undisputed fact on record that the assessee has made no investment in the “Equity Oriented Mutual Fund”. Even otherwise, under the SEBI Guidelines, mutual funds charge “fund management charges” out of the income earned by the fund, which are deducted and net income is made available for the distribution of the unit holders. Even tax auditor in its tax audit report quantified the disallowance u/s 14A of the Act at ₹ 4,86,374/-. Apart from this, the assessee has suo motu reasonably apportioned the salary part of the employee and Finance Director looking after investment made for earning dividend income. As perused the order passed by the coordinate Bench of the Tribunal in assessee’s own case for AYs 2009-10 & 2010-11, having identical facts deleting similar addition made by the AO/CIT(A), which order has been affirmed by the Hon’ble Delhi High Court [2017 (12) TMI 1768 - DELHI HIGH COURT ] Since there is no change in the suo motu disallowance by the assessee as has been made in AYs 2010-11 & 2011-12, which has been confirmed by the Hon’ble Delhi High Court, making disallowance by the AO without recording satisfaction mandatory u/s 14A(2), is not sustainable. - Decided in favour of assessee. Deduction u/s 80IA - Claim rejected as no books of account were maintained nor requirement of audit as contained u/s 80IA (7) was fulfilled in the present case - HELD THAT:- Keeping in view the fact that the identical issue has already been decided by the coordinate Bench of the Tribunal in assessee’s own case for AY 2010-11 [2018 (8) TMI 979 - ITAT DELHI] - Grounds No.2 to 2.3 raised by the assessee are remitted back to the AO to verify the claim of the assessee made on the basis of the audited accounts and accordingly grant the deduction u/s 80IA in accordance with law. Appeal of the assessee is allowed for statistical purposes.
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