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Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI MANOMOHAN DAS
आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. By way of this misc. application in MA No.122/Chny/2023, the assessee seeks recall of ex-parte order passed by Tribunal in captioned appeal vide order dated 25-04-2023. The Ld. AR sought invocation of Rule 24 of ITAT Rules, 1963 and submitted that the non- appearance was neither willful nor intentional. The Ld. Sr. DR 2 - submitted that the order has been passed considering the factual matrix of the case.
Since the order under consideration is an ex-parte order, concurring with the submissions of Ld. AR, the said order stands recalled and the appeal is restored back to its original status.
During hearing, Ld. AR as well as Ld. Sr. DR submitted that only issue under appeal is small disallowance u/s 14A and therefore, the appeal may also be taken up for hearing and disposal. Accordingly, with the consent of both the sides, the appeal was taken up for hearing and disposal.
The only point urged by Ld. AR is that an objective satisfaction has not been recorded by Ld. AO before applying Rule 8D. The Ld. Sr. DR supported the impugned order. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under. The impugned order has been passed by learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 19-01-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s.143(3) of the Act on 26-03-2014. The solitary issue in the appeal is disallowance u/s 14A.
Upon perusal of assessment order, it could be seen that Ld. AO has computed disallowance u/s 14A u/r 8D(2)(iii) for Rs.4.14 Lacs, being 0.5% of average investments. The Ld. CIT(A) directed Ld. AO to adjust the same by reducing suo-motu disallowance of Rs.3.76 Lacs already offered by the assessee. Aggrieved, the assessee is in further appeal before us.
Upon perusal of para-6 of assessment order, it could be seen that Ld. AO, considering the provisions of Sec. 14A of the Act and having 3 - regard to the accounts of the assessee, has held that expenses were to be disallowed u/r 8D. We find that their in no specific format in which the satisfaction was to be recorded. Therefore, the plea of Ld. AR could not be accepted. The disallowance made by lower authorities is in conformity with the statutory mandate. Therefore, no interference is required in the impugned order.
The misc. application stand allowed. The appeal stand dismissed.
Both orders pronounced in the open Court on 22nd September, 2023.