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2024 (5) TMI 157 - ITAT DELHIDisallowance u/s 14A r.w.r. 8D - no proper recording of satisfaction by the AO for rejecting the suomoto disallowance - HELD THAT:- We find that the Tribunal in assessee’s own case [2024 (2) TMI 1043 - ITAT DELHI] held that there is no proper satisfaction recorded on the suo moto disallowance made by the assessee and, therefore, there cannot be any disallowance under Rule 8D r.w.s. 14A of the Act. There is no proper recording of satisfaction by the AO for rejecting the suomoto disallowance made by the AO. Thus, respectfully following the order of the Tribunal, we allow the grounds raised by the assessee. Disallowance under 14A of the Act while computing the provisions u/s 115JB - The issue is covered by the decision of Vireet Investments [2017 (6) TMI 1124 - ITAT DELHI] as held that there cannot be any disallowance under Rule 8D read with 14A of the Act in terms of clause (f) of Explanation 1 to section 115JB of the Act. Thus, respectfully following the said decision, we hold that the disallowance made under Rule 8D read with section 14A of the Act while computing book profits cannot be sustained. In any case since the assessee itself made suo moto disallowance there cannot be any further disallowance u/s 14A read with Rule 8D of IT Rules while computing the book profits u/s 115JB of the Act. Ground raised by the Revenue is rejected.
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