Dismissing the appeal of the Revenue the Court held that   the Assessing Officer had to examine the assessee’s claim with regard to expenditure incurred for earning exempt income and record satisfaction, more particularly, when he had not agreed with the disallowance claim under section 14A. However, such expenditure which had been incurred in respect of other income which had to be treated as part of the total income had to be considered under section 14A(2) of the Act read with rule 8D of the Income-tax Rules, 1962, but suo motu disallowance under section 14A of the Act made by the Assessing Officer was unwarranted. Recording of satisfaction by the Assessing Officer under rule 8D(2) of the Rules is mandatory. Therefore, invoking section 154(2) by the Assessing Officer to rectify the assessment order was untenable since there was no mistake apparent on the face of the record to invoke the proceedings under section 154 of the Act. Order of Tribunal affirmed.  (AY.2014-15)