Disallowance cannot be made without showing how assessee's claim/computation is wrong

CIT vs. REI Agro Ltd (Calcutta High Court)

February 4th, 2014

S. 14A / Rule 8D disallowance cannot be made without showing how assessee’s claim/ computation is wrong

The AO disallowed the expenditure u/s 14A without first recording that he was not satisfied with the correctness of the claim as regards the claim that “no expenditure” was made by the assessee. The disallowance u/s 14A of the Income-tax Act, 1961 is plainly contrary to the provisions of the statute. The CIT allowed the appeal of the assessee and the Tribunal did not interfere. Challenging the order of the tribunal, the present appeal has been filed. We and are of the opinion that no point of law has been raised. Therefore, this appeal is dismissed.