Income Tax Reference No. 290 of 1985 · Gujarat High Court · 2001
Case at a glance
Provisions considered
Judgment
CORAM : MR.JUSTICE J.M.PANCHAL MR.JUSTICE M.S.SHAH Date of decision: 08/01/2001 ORAL JUDGEMENT (Per : MR.JUSTICE M.S.SHAH) (cid:9)In this reference at the instance of the revenue, the following questions are referred for our opinion in respect of Assessment Year 1980-81 :- (cid:9)
Whether, the Appellate Tribunal has not erred in law and on facts in holding that interest of Rs.4,67,813/- was not chargeable from Sercon Pvt. Ltd. ? (cid:9)
Whether, the Appellate Tribunal has not erred in law and on facts in holding that deduction under section 80M is admissible on net dividend before deduction of the amount admissible under section 80K of the Income tax Act, 1961 ?
2.(cid:9)We have heard Mr BB Naik, learned counsel for the revenue and Mr RK Patel, learned counsel for the assessee.
3.(cid:9)As far as question No. 2 is concerned, the learned counsel for the parties agree that the controversy raised herein is concluded by the decision of this Court in CIT vs. Sarabhai & Sons, (1995) 211 ITR 20 wherein this Court held that in computing deductions allowable under sub-section (1) of section 80M, the net dividend income should be reduced by the deductions allowable to the assessee under section 80K, as provided in sub-section (2) of section 80M. (cid:9)In view of the above decision, we hold that the Tribunal has erred in holding that deduction under Section 80M is admissible before deduction of the amount admissible under Section 80K of the Act. We accordingly answer question No. 2 in favour of the revenue and against the assessee.
4.(cid:9)As far as question No. 1 is concerned, the learned counsel have invited our attention to the order dated 28.2.2000 in ITR No. 63/85 and to the order dated
20.9.1999 of this Court in ITR No. 195/84. Relying on the aforesaid orders in references betwen the same parties, we send back the case to the Tribunal to pass appropriate orders taking into consideration the observations made in the order dated 20.9.1999 of this Court in ITR No. 195 of 1984. (cid:9)The reference accordingly stands disposed of with no order as to costs. (cid:9) (cid:9)(J.M. Panchal, J.) (cid:9) (cid:9) sundar/-
Questions this judgment answers
Which statutory provisions did this judgment involve?
Constitution of India; Income Tax Act, 1961 — s. 80K.
Which court decided this case, and when?
Gujarat High Court, on 08 Jan 2001. The bench was M PANCHAL, M S SHAH.
Precedent status how later indexed judgments have treated this case
No known negative treatment found in the Courts & Cases corpus.
This is a result about the indexed corpus, not a finding that the judgment remains good law. Coverage may be incomplete.