Disallowance of Expenditure u/s 14A by AO without Recording a Satisfaction is Not Justified

Shri Vinay Bhasin Vs. ACIT (Delhi ITAT) The issue under consideration is whether the disallowance of expenditure under section 14A by AO without recording a satisfaction is justified in law? In the instant case, the disallowances has been made by the Assessing Officer for expenses towards earning exempt income in terms of section 14A of the Act. During the year, the assessee shown exempted income of ₹ 10,87,838/-from dividend; income of ₹ 8,26,342/- from interest from tax-free bonds and ₹ 39,36,670/-from long-term capital gain on sale of listed shares. The assessee claimed that no expend...