Case Law Details
Brief of the case:
In this case AO made certain addition being disagreed from the submissions of the assessee. Being aggrieved from the assessment order assessee filed appeal before CIT (A). After considering submissions of the assessee and noticing that the provisions of Section 14A has to be invoked and disallowance has to be made in accordance with rule 8D which was effective from AY. 2008- 09, he directed assessee to furnish calculation of disallowance as per rule 8D, which worked out to Rs. 92,43,413/-.
AO was directed to verify the working so given and consider the amount arrived at such working as per rule 8D for making disallowance. AO instead of verifying the claim of assessee as per direction of AO made further enhancement which was confirmed by CIT (A) subsequently. On appeal to ITAT partly allowed the appeal and held that AO’s jurisdiction is restricted to verifying the working provided by assessee and if he is not satisfied with the working, he can at best disallow the amount originally disallowed by the AO.
Facts of the case:
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