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2021 (9) TMI 1077 - ITAT PUNEDisallowance u/s.14A read with Rule 8D - Mandation of recording satisfaction - disallowance in respect of expenses incurred for earning the exempt income - Assessee argued AO not recording satisfaction before making addition - HELD THAT:- AO noted the assessee's explanation that the "company had not incurred any expense in relation to earning exempt income and found the same to be unacceptable" by finding that maintaining portfolios do require constant monitoring and control and incidental expenses are incurred. Thereafter, the AO observed that there was no "one to one correlation with regard to the expenditure vis-à-vis the exempt income, i.e. dividend". In view of the above overwhelming satisfaction recorded by the AO as to the correctness of the assessee's claim in this regard, we are not impressed with the ld. AR's submission that the AO did not record satisfaction in terms of section 14A(2) of the Act. As decided in own case [2018 (11) TMI 1869 - ITAT PUNE] ITAT has restored the matter of section 14A disallowance to the file of AO with certain directions. In reaching this conclusion, the Tribunal relied upon its order in the assessee's own case for the assessment years 2008-09 to 2011-12 - On merits, we set-aside the impugned order and remit the matter to the file of AO for computing the disallowance u/s. 14A in the hue of the directions given by the Tribunal in its order for the assessment years 2008-09 to 2011-12.
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