ITAT deleted addition as AO had not recorded any satisfaction
ITAT deleted addition as AO had not recorded any satisfaction
Assessee declared income under the head capital gains on sale of shares held by way of investment. AO made total disallowance of Rs.12,77,081 of the expenses u/s 14A r.w. Rule 8D. CIT(A) confirmed the action of AO. ITAT deleted the addition as AO had not recorded any satisfaction that books of account of assessee were not reliable or the investment was made out of interest bearing funds to investments which gave exempted income.-501303
1. The assessee declared income under the head capital gains on sale of shares held by way of investment. The AO made total disallowance of Rs.12,77,081 of the expenses by invoking section 14A of the Act read with Rule 8D of the Rules.
2. CIT(A) confirmed the action of AO.
3. On appeal, the ITAT held as under:
4. I find from the facts of the case that the AO has not recorded any satisfaction that the books of account of assessee are not reliable or the investment is made out of the interest bearing funds to the investments which gives exempted income or expenses are relatable to exempted income. In absence of such finding, the issue stands covered by jurisdictional High Court and Hon'ble Delhi High Court in the cases of Taikisha Engineering India Ltd. and REI Agro Ltd., supra. In term of the above, I delete the addition and allow the appeal of assessee. 6. In the result, the appeal of assessee is allowed.”
Case Reference - Amitabh Sonthalia Vs. Income-tax Officer.
IN THE INCOME TAX APPELLATE TRIBUNAL "SMC " BENCH: KOLKATA
[Before Shri Mahavir Singh, JM]
I.T.A No.884/Kol/2015
Assessment Year: 2009-10
