2008 (2) TMI 586 - HC - Income Tax

Intercorporate Dividend- The Assessing Officer made recomputation making partial disallowance of the claim on the ground that the assessee would have incurred some expenditure for earning the dividend income. The Tribunal found that there is no basis for estimating expenditure and reducing the same from the dividend income in respect of which section 80M relief is claimed by the assessee. Held that- the amount of dividend and disallowance involved being negligible there was no ground to interfere with the order of Tribunal. Dismiss the appeal.

Summary

The Kerala High Court judgment involved two connected appeals by the Revenue regarding assessment years 1991-92 and 1992-93. Most questions were decided in favor of the assessee based on previous rulings. The remaining issue was about the computation of relief under section 80M, where the Tribunal found no basis for estimating expenditure. The court upheld the Tribunal's decision, dismissing both appeals.