Section 14A AO cannot disallow expenses without recording his findings

The Assessing Officer made disallowance by invoking the provisions of Section 14A r.w. Rule 8D of the Income Tax Rules. As per assessee, the AO has not established any nexus between the expenditure disallowed and investment made from which the income denied is exempt from tax. Secondly, the AO has not recorded any proper satisfaction about the correctness of the claim in respect of such expenditure. There is no dispute with regard to the fact that the assessment year under appeal being 2008-2009, therefore, any disallowance u/s. 14A would be in accordance with the method prescribed under Rule ...