Recently renovated a kitchen, including adding 2 GFI outlets: one by the sink and one on the opposite wall near stove. City inspector ordered that the one by the sink be removed. What reason would the city have to require the expense of removing a GFI outlet?
2011 code has nothing on the subject. However it is clear the purpose of the rules therein is to keep you from draping cords across sinks. That seems like a very good idea.
Code requires outlets anywhere there's a 12" or wider section of countertop - because that space will inevitably draw a coffeemaker or George Foreman. It's possible the inspector is seeing an outlet over a space less than 12" wide, and saying "Well, you'll never put anything there, you'll end up draping cords across the sink to another place (which might be shy of outlets)."
Code also requires a GFCI for any countertop outlet (210.8a6), and near any sink anywhere (210.8a7). That means he definitely does NOT mean to have an unprotected outlet there. If an outlet is allowed at all, it must be GFCI protected, whether by GFCI outlet, being daisy-chained from the
LOAD terminals of another GFCI outlet, or a GFCI breaker in your service panel.
It's also possible he's telling you "dummy, this outlet feeds from the other one, just daisy chain it off the
LOAD terminals of the first GFCI and no need for this one." But that is merely economy, and the inspector wouldn't have a stake in that.