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TMI Blog2006 (5) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... ve been distributed before the due date for filing of returns under section 139(1) of the Act. If this requirement of law is not complied with and a mere resolution is passed declaring the dividend that would not satisfy the requirement under section 80M for claiming deduction. No deeming provision can be introduced into the section and the section cannot be interpreted to say that if dividend has been declared or a resolution has been passed, deduction under section 80M should be given. - - - - - Dated:- 4-5-2006 - Judge(s) : T. S. THAKUR., SHIV NARAYAN DHINGRA. JUDGMENT The judgment of the court was delivered by Shiv Narayan Dhingra J.- The appellant filed a return for the assessment year 1995-96 disclosing a total income of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esolution for payment of proposed dividend of Rs. 36,82,510 was approved in the annual general meeting of the assessee company held on October 30, 1995. Since the approval of payment of dividend had been done, irrespective of the fact that the dividend was actually paid on December 8, 1995, the assessee was entitled for deduction under section 80M. Section 80M reads as under: "80M. Deduction in respect of certain inter-corporate dividends.- (1) Where the gross total income of a domestic company, in any previous year, includes any income by way of dividends from another domestic company, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of such domestic company, a deduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that the dividend should have been distributed before the due date for filing of returns under section 139(1) of the Act. If this requirement of law is not complied with and a mere resolution is passed declaring the dividend that would not satisfy the requirement under section 80M for claiming deduction. No deeming provision can be introduced into the section and the section cannot be interpreted to say that if dividend has been declared or a resolution has been passed, deduction under section 80M should be given. The Commissioner of Income-tax and the Tribunal both have disallowed electricity charges to the extent of Rs. 2,10,845 since that related to the period prior to April 1, 1994. The contention of the assessee that since the bill ..... X X X X Extracts X X X X X X X X Extracts X X X X
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