Disallowance U/s. 14A untenable in absence of Non-recording of satisfaction

Smartchem Technologies Ltd. Vs. ACIT (ITAT Mumbai) There is no reference to any of the fact-situation or any credible reasoning or material by the assessing officer before rejecting the plea of the assessee and proceeding to determine the dis allowance by applying the formula contained in rule 8D of the Rules. In fact, the phraseology of section 14A of the Act itself specifies that the satisfaction contemplated is required to be arrived at “having regard to the accounts”, an approach which is conspicuous by its absence in the present case. Therefore, in view of such an inadequacy in the ac...