9911796707
TMI Blog2010 (11) TMI 775X X X X Extracts X X X X X X X X Extracts X X X X ..... ation by this court : "Whether the Tribunal was right in law in holding that the Assess-ing Officer was justified in rectifying the assessment order in view of the judgment of the hon'ble Supreme Court in CIT v. Kotagiri Industrial Co-operative Tea Factory Ltd. [1997] 224 ITR 604 (SC) even though the judgment of the Supreme Court came on a date much after the rectification order was passed ?" 3. Briefly stated the facts necessary for adjudication, as narrated in the appeal, are that the appellant-assessee is a co-operative society. The assessee filed a return declaring total income of Rs. 2,11,77,724, on October 29, 1990 and assessment was completed on January 8, 1993. An order under section 250/150 of the Act, dated May 28, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal vide order dated January 31, 1995, annexure P-2, by holding that the issue, whether deduction under section 80-I has to be allowed before the adjustment of brought forward losses/allowances or after adjustment of the same, was highly debatable. 4. The Revenue challenged the order of the Commissioner of Income-tax (Appeals) by filing an appeal before the Tribunal. The Tribunal vide the order under appeal held that the rectification made vide annexure P-3 was valid and partly accepted the appeal. The Tribunal held that in so far as unabsorbed losses/allowances are concerned, the same had to be reduced from the gross total income for calculating the deduction under section 80-I of the Act. However, whether the interest incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, for this, reliance had been placed on its earlier judgment in Distributors (Baroda) P. Ltd. v. Union of India [1985] 155 ITR 120 (SC) wherein a similar proposition of law was laid down in respect of inter corporate dividend under section 80M to be the net amount and not the actual amount received. He submitted that in such a situation, the issue was not debatable when proceedings under section 154 of the Act were initiated by the Assessing Officer for disallowance of unabsorbed losses/allowances of the earlier years. According to him, rather the order dated June 23, 1993 could not be passed by the then Assessing Officer under section 154 of the Act being contrary to the apex court judgment in Distributors (Baroda) P. Ltd.'s case [1985] 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of the Act and forming part of the gross total income or with reference to the full amount of dividend received by the assessee. The Supreme Court held that it is the net amount of dividend which will be deducted under section 80M of the Act. The relevant observations read thus (page 134) : "But the amount by way of dividend which would otherwise suffer tax in the hands of the assessee would be the amount computed in accordance with the provisions of the Act and not the full amount received from the paying company. Therefore, it is reasonable to assume that in enacting section 80M, the Legislature intended to grant relief with reference to the amount of dividend computed in accordance with the provisions of the Act and n ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
