AO has to record his satisfaction before proceeding to make addition u/s 14A

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 ...