TMI Blog2012 (3) TMI 464X X X X Extracts X X X X X X X X Extracts X X X X ..... here the assessee claims that no expenditure was so incurred, the statute has provided for a presumptive expenditure which has to be disallowed by force of the statute. In a distant manner, literally speaking, it may even be considered for the purpose of convenience as a deeming provision. When such deeming provision is made on the basis of statutory presumption, the requirement of factual evidence is replaced by statutory presumption and the Assessing Officer has to follow the consequences stated in the statute. It means that even in a case where no expenditure is stated to have been incurred, the assessing authority has to apply Rule 8D. As the statutory presumption substitutes the requirement of factual evidence, the question of enquiry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppearing for the Revenue. 4. It is the case of the learned CA that the Assessing Officer may invoke the provisions of law stated in sec.14A only after conducting necessary enquiries into the factual aspects of the assessee s case. The learned CA submits that even if the law authorizes the Assessing Officer to make a disallowance on presumptive basis, the necessary enquiries may be conducted by him in the present case. The Assessing Officer has straightaway adopted Rule 8D and made the disallowance. This was made without any factual enquiry. This is against the law. Therefore, the learned CA submitted that the addition must be held to be invalid. 5. The learned Commissioner, on the other hand, explained the scheme of sec.14A wherein th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee claims that no expenditure was so incurred, the statute has provided for a presumptive expenditure which has to be disallowed by force of the statute. In a distant manner, literally speaking, it may even be considered for the purpose of convenience as a deeming provision. When such deeming provision is made on the basis of statutory presumption, the requirement of factual evidence is replaced by statutory presumption and the Assessing Officer has to follow the consequences stated in the statute. It means that even in a case where no expenditure is stated to have been incurred, the assessing authority has to apply Rule 8D. As the statutory presumption substitutes the requirement of factual evidence, the question of enquiry does not arise. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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