TMI Blog2014 (8) TMI 722X X X X Extracts X X X X X X X X Extracts X X X X ..... – CIT(A) without recording any reasoning for his dissatisfaction with regard to the working/claim of the assessee, straightway applied Rule 8D against the mandate of the provisions of section 14A of the Income Tax Act - CIT(A) also ignored the mandate of the provisions of section 14 A, while confirming the disallowance – thus, the matter is remitted back to the AO for fresh adjudication – Decided in favour of Assessee. - ITA No. 4589/M/2012 - - - Dated:- 20-8-2014 - Shri N. K. Billaiya And Shri Sanjay Garg,JJ. For the Petitioner : Shri K. K. Ved, A.R. For the Respondent : Shri Vijay Kumar Sami, D.R. ORDER Per Sanjay Garg, Judicial Member: The present appeal has been filed by the assessee against the order o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expenditure incurred wholly and exclusively in connection with the transfer of the short term capital assets which has resulted in short term capital gains and hence no disallowance is called for while computing the said short term capital gains and the stand taken by the Assessing Officer is erroneous and the Commissioner of Income-tax (Appeals) ought to have held as such. 2:3 The Appellant submits that the Assessing Officer be directed to delete the disallowance so made by him and to re-compute its total income accordingly. 3:0 Re.: Addition of the write back from provision for Non-Performing Assets to the 'Book Profits' as computed u/s. 115JB of the Income-tax Act, 1961. 3:1 The Commissioner of Income-tax (Appeals) has e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9;Book Profits' in terms of clause (i) to Explanation 1 to section 115JB of the Income-tax Act, 1961 and the Commissioner of Income-tax (Appeals) ought to have held as such. 4 : 3 The Appellant submits that the Assessing Officer be directed to reduce the amount of write back from the provision for Non-Performing Assets from the book profits of the Appellant. 5:0 Re.: General: 5 : 1 The Appellant craves leave to add, alter, amend, substitute and/or therwise modify in any manner whatsoever all or any of the foregoing grounds of appeal at or before the hearing of the appeal. 3. Ground No.1 relates to disallowance under section 14A of the Act. 4. We have heard the ld. representatives of both the parties and have also gone th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The satisfaction of the Assessing Officer has to be arrived at, having regard to the accounts of the assessee. Sub section (2) does not ipso facto enable the Assessing Officer to apply the method prescribed by the rules straightaway without considering whether the claim made by the assessee in respect such expenditure is correct. The satisfaction of the Assessing Officer must be arrived at on an objective basis. In a situation where the accounts of the assessee furnish an objective basis for the Assessing Officer to arrive at a satisfaction in regard to the correctness of the claim of the assessee, there would be no warrant for taking recourse to the method prescribed by the rules. An objective satisfaction contemplates a notice to the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee, then he will assess the income accordingly. However, if the AO does not agree with the computation made by the assessee and in that event, he will have to record his dissatisfaction with reasoning for the same by way of a speaking order, then he will be at liberty to resort to the provisions of Rule 8D. Needless to say, the assessee will co-operate and promptly supply the necessary details etc. to the AO for deciding the issue under consideration. Accordingly, ground No.1 of the assessee is allowed for statistical purposes. Ground No.2 8. The ld. A.R. of the assessee has been fair enough to state that the ground No.2 is covered against the assessee by the decision of the Tribunal in the own case of the assessee for the earlier a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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