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1 - 6 of 6 (0.40 seconds)Section 263 in The Income Tax Act, 1961 [Entire Act]
Section 2 in The Income Tax Act, 1961 [Entire Act]
The Principal Commissioner Of Income ... vs M/S Gujarat Flurochemicals Ltd on 5 September, 2023
(iii) Principal Commissioner of Income-tax V. Gujarat
Flurochemicals Ltd. [2023] 155 taxmann.com 135 (Gujarat)
"15 In Maxopp Investment Limited (supra), the Supreme Court has
clarified that the satisfaction has to be recorded by the Assessing
Officer to show that the voluntary disallowance of the expenditure
made by the assessee on the expenditure incurred for earning exempt
income is not in order. The Assessing Officer, in such circumstances,
is obliged to assign reasons for he not being satisfied having regard
to the accounts maintained by the assessee and the suo motu
disallowance made by the assessee under section 14A of the Act. We
may reproduce the relevant observations of the Supreme Court in this
regard thus:
The Principal Commissioner Of Income ... vs Cims Hospital Pvt. Ltd. on 25 February, 2020
(i) Principal Commissioner of Income Tax V. CIMS Hospital (P.)
Ltd. [2021] 125 taxmann.com 227 (Gujarat)
"7. On perusal of the aforesaid provisions, it is clear that to
determine the amount of expenditure incurred by the assessee in
relation to the income which does not form part of the total income
under the Act 1961, the Assessing Officer can apply the method to
calculate such expenditure as provided under Rule 8D of the Rules
1962 only if the Assessing Officer having regard to accounts of the
assessee is not satisfied with the correctness of the claim made by the
assessee in respect of such expenditure in relation to the exempted
income under the Act-1961. Thus, pre-condition for applying rule 8D
of the Rules-1962, the Assessing Officer is required to be satisfied as
provided in sub-section 2 of section 14A of the Act-1961.
The Principal Commissioner Of Income ... vs Gujarat State Fertilizers And Chemical ... on 1 July, 2019
(ii) Principal Commissioner of Income-tax, Vadodara-1 V.
Gujarat State Fertilizers And Chemicals Ltd. [2019] 108
taxmann.com 560 (Gujarat)
"18. The language of Section 14A of the Act is plain and clear.
Before invoking Rule 8D, the Assessing Officer is obliged to indicate
that having regard to the accounts of the assessee, he is not satisfied
with the correctness of the claim of the assessee in respect of such
expenditure in relation to the income which does not form part of the
total income under the Act. To put it in other words, the condition
precedent of recording the requisite satisfaction which is a safeguard
provided in Sect ion 14A should not be overlooked before going to
Rule 8.
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