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TMI Blog2022 (2) TMI 286X X X X Extracts X X X X X X X X Extracts X X X X ..... nt Year 2008-09. The appeal was admitted by a Bench of this Court on the following substantial question of law: The tribunal was right in upholding the disallowance under Section 14A of the Act read with Rule 8D of the Rules, although no satisfaction had been recorded by the assessing officer to the effect that the disallowance proposed to the extent of Rs. 1,61,035/- by the appellant was incorrect? 2. Facts leading to filing of this appeal briefly stated are that the assessee is engaged in the business of processing and trading of ophthalmic lenses. The assessee received dividend of Rs. 36,97,500/- from its subsidiary viz., GKB RX Lens Pvt. Ltd. in which assessee held 50% shares. The assessee filed its return of income for assessment Yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The appeal filed by the assessee was dismissed by the tribunal by an order dated 07.07.2017. In the aforesaid factual background, this appeal has been filed. 5. Learned Senior counsel for the assessee submitted that no further disallowance beyond the disallowance of Rs,1,61,035/- under Section 14A read with Rule 8D of the Rules could be made. It is further submitted that in the order of assessment, the assessing officer has not recorded the satisfaction that disallowance made by the assessee was incorrect and in the absence of the satisfaction recorded by the assessing officer with regard to incorrectness of the claim of the assessee, no further disallowance by the assessing officer could have been made. Learned Senior counsel for the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessee is not satisfied with the correctness of the claim of assessee in respect of such expenditure in relation to income which does not form part of total income under this Act. It is well settled in law that assessing officer has to record reasons for disagreeing with the claim of the assessee that it had incurred no expenditure for earning such exempt income. Even Rule 8D(1) requires the assessing officer to mandatorily record his satisfaction that the claim made by the assessee that no expenditure has been incurred in earning the exempt income is incorrect. [See:'GODREJ & BOYCE MANUFACTURING COMPANY LTD. VS. DCIT', (2017) 81 TAXMANN.COM 111 (SC)] 8. Now we may advert to the facts of the case and examine whether the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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