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TMI Blog2010 (10) TMI 859X X X X Extracts X X X X X X X X Extracts X X X X ..... eceived from PNB Mutual Fund can be termed as dividend income nor can the said fund be categorized as the domestic company within the meaning of Section 80M the question of law is answered against the assessee. - ITA No. 281 of 2004 - - - Dated:- 7-10-2010 - Adarsh Kumar Goel, Ajay Kumar Mittal, JJ. Sanjay Bansal, Sr. Adv. with Suveta Malhotra, Adv. for the Appellant Rajesh Katoch, Adv. for the Respondent Ajay Kumar Mittal, J 1. This order shall dispose of ITA Nos. 281 of 2004, 500 and 501 of 2005 as common question of law and facts are involved therein. For brevity, the facts are being taken from ITA No. 281 of 2004. 2. This Court vide order dated 4.7.2006 had admitted the appeal for consideration of the fol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deduction under Section 80M of the Act. 6. Learned counsel for the assessee submitted that the income which was distributed by another company, namely, PNB Mutual Fund was in the nature of dividend received by the assesseecompany and, therefore, in view of Section 80M, the assessee was entitled to deduction. He has placed reliance upon the judgment of this Court in Commissioner of Income-tax v. Puja Investments (P) Ltd., [2005] 272 ITR 606 (PandH) in support of his submission. 7. On the other hand, controverting the aforesaid submission, learned counsel for the revenue argued that the authorities below have concurrently recorded that it was an income and not a dividend which was distributed by the PNB Mutual Fund and that the Mutua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of dividend distributed by such domestic company. Thus, the assessee is entitled to deduction when it receives dividend income from another domestic company. 10. Now adverting to the present case, the Assessing Officer rejected the ground of the assessee in respect of deduction under Section 80M of the Act, with the following observations:- "The assessee has claimed deduction u/s 80M amounting to Rs.9,83,120/-. On scrutinizing the details with respect to the claim of this deduction it is seen that Rs.8,00,000/- PNB Mutual Funds is not a domestic company. It is simply a Mutual Fund whose trustee is the PNB Capital Services Ltd. Thus any receipts of dividend received from such entity which is not company itself does not make su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 80M in respect of dividend received from the mutual fund. It may be pertinent to mention that the income from mutual fund is now specifically exempt u/s 10(33). However, the said amendment is not applicable in the year under appeal. The assessee is thus not entitled to any relief u/s 80-M in regard to dividend of Rs.8 Lac. This ground of appeal is thus dismissed." 12. Nothing was shown by the learned counsel for the assessee that the said finding was perverse in any manner. 13. The judgment relied upon by the assessee in Puja Investments (P) Ltd's case (supra) does not apply to the facts of the present case. In that case, the trust had received certain dividends from an Indian Company which was paid to the assessee-company. It w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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