TMI Blog2014 (7) TMI 1286X X X X Extracts X X X X X X X X Extracts X X X X ..... red the mandate of the provisions of section 14 A, while confirming the disallowance. We restore this issue back to the file of the AO with a direction that the AO will give opportunity to the assessee to place on record all the relevant facts including its accounts and then examine the computation/calculation made in this regard by the assessee having regard to the accounts of the assessee. The AO will be at liberty to call for any record/evidences or statement etc. from the assessee as may be required by him for deciding the issue under consideration. After going through the details provided by the assessee, if the AO will be satisfied with the claim/calculation made by the assessee, then he will assess the income accordingly. - Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd managerial expenses. He therefore worked out the said expenditure by applying rule under 8D.(iii) of the I.T. rules at ₹ 1049901/- and disallowed the same. 4. In appeal before the CIT(A), it was submitted by the representative of the assessee that the AO had not given any reasoning for rejecting the assessee s suomoto working of disallowance u/s14A at ₹ 4,99,614/-. However, the CIT(A) observed that since the assessment year involved was A.Y. 2008-09, so the disallowance u/s 14A had to be worked out by the AO as per rule 8D of the I.T. Rules. He therefore held that the disallowance as per rule 8D(iii) had rightly been worked out by the AO. Aggrieved against the order of the ld. CIT(A), the assessee has come in appeal before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his accounts and recording of reasons by the Assessing Officer in the event that he comes to the conclusion that he is not satisfied with the claim of the assessee. 6. However, a perusal of the assessment order reveals that the AO has not followed the guidelines of objective satisfaction as laid down by the hon ble Bombay high Court in the case of Godrej Boyce (supra) while making the disallowance . He 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. The ld. CIT(A) also ignored the mandate of the provisions of section 14 A, while confirming the disallowance. 7. So keeping in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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