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TMI Blog2018 (7) TMI 1562X X X X Extracts X X X X X X X X Extracts X X X X ..... t. The very basis of allocating expenses on a notional basis to reduce the dividend, entitled to the benefit of Section 80M of the Act, is the subject matter of challenge before us. Therefore, even if the finding of fact viz. Notional expenditure has been incurred is not specifically challenged, the law is settled that it cannot be reduced from the dividend income for deduction under Section 80M of the Act. Expenses on account of stamp duty - Held that:- We find that the impugned order of the Tribunal itself records that the same has been disallowed by the Assessing Officer. In any case, this Court in General Insurance Corporation (2000 (9) TMI 12 - BOMBAY HIGH COURT) has held that expenses incurred on account of stamp duty for transfer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ercorporate dividend received by it. The Assessing Officer's order dated 10th March, 2000 restricted the claim of deduction under Section 80M of the Act to ₹ 12.03 lakhs. This by reducing interest paid to the extent of 56.35 lakhs and ₹ 5 lakhs being estimated expenditure i.e. an aggregate of ₹ 61.35 lakhs. 4) Being aggrieved with the order dated 10th March 2000, the appellant filed an appeal to the Commissioner Income Tax (Appeals) [CIT(A)]. By an order dated 2nd April,2001, the CIT (A) deleted disallowance of ₹ 5 lakhs being the notional expenses attributable for earning dividend income. This CIT(A) restricted disallowance under Section 80M of the Act only to the actual expenses incurred to earn the dividend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that the decision of the Apex Court in the case of United General Trust Limited (supra) relied upon by the impugned order of the Tribunal, proceeded on a concession made by the respondentassessee therein. Therefore, the above decision of the Apex Court does not have force of a binding precedent. In support, reliance was placed on the decision of the Apex Court in Director of Settlement Vs. M.R. Apparao (2002) 4 SCC 368. Thus, it is submitted that the appeal be allowed on this issues. 8) Mr. Tejveer Singh, learned counsel appearing for the Revenue submits that the disallowance of ₹ 5 lakhs on notional basis is a finding of fact rendered by the Tribunal. Therefore, he submits no interference is called for. 9) We have con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Ltd (supra), General Insurance Corporation (supra) and Reliance Industries Ltd. (supra) have all taken a view that only actual expenses incurred for earning dividend income ought to be taken into account while determining the deduction under Section 80M of the Act. Thus, there is no question of making allocation of expenditure on notional basis to earn dividend income, to determine the deduction of dividend under Section 80M of the Act. 10) The contention on behalf of the Revenue that the Tribunal has rendered a finding of fact of ₹ 5 lakhs being incurred for earning dividend income, has not been challenged, is not correct. The very basis of allocating expenses on a notional basis to reduce the dividend, entitled to the benefit o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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