S. 14A disallowance cannot be made merely based on Audit Report

M/s IMC Ltd. Vs. ACIT (ITAT Kolkata)

Ld. AO had merely made the dis allowance u/s 14A by placing reliance on the tax audit report without even going into the very basis of the workings of the said amount arrived at by the tax auditor. During the year under appeal, it is not in dispute that the provisions of Rule 8D are applicable. Then it is the duty of the Ld. AO to record satisfaction in terms of section 14A(2) read with Rule 8D(1) of the Rules, before proceeding to make dis allowance as pe

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