Dismissing the appeal of the revenue the Court held that the AO has not recorded his satisfaction regarding correctness of self disallowance made by the assessee u/s 14A as was mandatory in terms of S.14A(2) to invoke and recourse as per rule 8D of the Act. Accordingly the order of the Tribunal is affirmed. (AY. 2011-12)
PCIT v. Keshav Power Ltd (2019) 112 taxmann.com 323 / (2020) 268 Taxman 332 (Delhi) (HC) Editorial: SLP of revenue is dismissed as the tax effect is less than Rs. 2 crores PCIT v. Keshav Power Ltd (2020) 266 Taxman 331 (SC)
S. 14A : Disallowance of expenditure-Exempt income-Recording of satisfaction-AO has not recorded the satisfaction how the disallowance made by the Assessee is not correct–Deletion of disallowance by the Tribunal is affirmed. [R. 8D]