The Tribunal \u00a0held that The Assessing Officer was required to record his categorical dissatisfaction with the working of the disallowance given by the assessee and state that the working was not correct. The Assessing Officer had invoked the provisions contained under section\u00a014A\u00a0read with rule\u00a08D\u00a0on the basis of general principles, inter alia, that the earning of exempt income was not in the nature of passive activity having no input and that the assessee\u2019s claim that he had not incurred any expenditure to earn dividend income was not acceptable .When the Assessing Officer had failed to comply with the mandatory requirement of section\u00a014A(2)\u00a0read with rule\u00a08D(2)(ia)\u00a0to record his satisfaction, the question of applying rule\u00a08D(2)(iii)\u00a0did not arise. Thus, the disallowance made by the Assessing Officer and confirmed by the Commissioner (Appeals) was not sustainable. As regards\u00a0 claim under section 80IA of the Act , the issue was remanded to the Assessing Officer with a direction to verify the claim of the assessee by examination of the audited accounts of the industrial undertaking and then grant deduction under section\u00a080IA\u00a0in accordance with the law.( AY.2012-13)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 14A : Disallowance of expenditure – Exempt income \u2013 Not recording dissatisfaction with the working of disallowances given by the Assessee- No disallowance can be made \u2013 Industrial undertaking \u2013 Matter remanded to the Assessing Officer .[ R.8D 80IA(4)(iv) ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-13545","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3wt","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13545","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=13545"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13545\/revisions"}],"predecessor-version":[{"id":13546,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13545\/revisions\/13546"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=13545"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=13545"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=13545"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}