Case Law Details
Brief of the Case-
Delhi High Court Held In the case of I.P. Support Services India (P) Ltd vs CIT that AO cannot invoke Section 14A read with Rule 8D (2) without recording his satisfaction and noted that the recording of satisfaction as to why “the voluntary disallowance made by the assessee was unreasonable and unsatisfactory” is a mandatory requirement of the law. Court followed the judgment by the same court in the case of Maxopp Investment (P) Ltd. v. CIT & CIT v. Taikisha Engineering India Ltd.
Facts of the Case
The assessee is a company doing business of providing legal support and other support services to law firms, specifically related to search of trade mark, patent and design out of the unique data base created and owned by the assessee.
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