Case Law Details
Prism Cement Ltd. Vs DCIT (ITAT Mumbai)
We observed that assessee has earned exempt income of Rs. 12,62,95,486/- and made a suo moto disallowance of Rs. 29,87,943/-. After careful consideration of the assessment order passed by the AO and the order passed by Ld. CIT(A), it is fact on record that AO has not recorded any satisfaction before rejecting the suo moto disallowance made by the assessee and Ld. CIT(A) also clearly accepted this fact that no satisfaction was recorded. We notice from the record that no satisfaction was recorded even in the earlier Assessment Year 2008-09 and 2009- 10 and based on the above facts on record, Coordinate Bench of ITAT has deleted the disallowance made u/s 14A.
Therefore, respectfully following the decision of Coordinate Bench of ITAT which is applicable mutatis mutandis in the present case, we are inclined to accept the submission of Ld. AR and delete the addition made u/s 14A by observing that there is no satisfaction recorded by the AO as per the findings of Ld. CIT(A).
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The present four appeals have been filed by the assessee and revenue against the order of Commissioner of Income Tax (Appeals)-54, Mumbai in short ‘Ld. CIT(A)’, dated 30.11.2017 for AY 2011-12 and 2012-13 respectively.
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