9911796707
TMI Blog1992 (1) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... diction to revise the order of assessment?" Shortly stated, the facts are that the Income-tax Officer, in making the assessment, allowed deduction of Rs. 4,93,198 to the assessee under section 80M of the Income-tax Act, 1961, on the intercorporate dividend of Rs. 8,21,996 which was equal to the gross amount of Rs. 9,73,594 minus interest expenses of Rs. 1,51,172 and deduction under section 80K of Rs. 426. On scrutiny of the records, the Commissioner of Income-tax subsequently found that the Income-tax Officer allowed an excess deduction of Rs. 1,40,148 to the assessee under section 80M and as such the order of the Income-tax Officer was considered to be erroneous and prejudicial to the interests of the Revenue. The Commissioner of Income- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dicial to the interests of the Revenue. In the facts and circumstances of the case, we are of the opinion that no error was committed by the Income-tax Officer in the assessment order passed by him in the matter of granting relief tinder section 80M to the extent of Rs. 4,93,198. " At the hearing before us, the contention raised before the Tribunal has been reiterated. The Commissioner of Income-tax, in passing the order tinder section 263 of the Income-tax Act, 1961, observed as follows : " On a careful consideration of the point at issue, I am unable to accept the arguments put forth by the learned authorised representative on behalf of the assessee. In my opinion, deduction under section 80M should have been computed with reference t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be allowed on the resultant income. We are unable to accept this contention of the Revenue. Where part of the dividend income is utilised for setting off loss under any other head, relief under section 80M of the Income-tax Act, 1961, is to be allowed on the dividend income before such set-off subject to the overall limit imposed by section 80A(2) of the Income-tax Act, 1961. The relief tinder section 80M has to be computed on the dividend income included in the assessment but while allowing relief, the relevant consideration is what is the total income computed after setting off of loss and unabsorbed depreciation, if any. The relief must be linked with the income arrived at after taking into account the loss and depreciation. In a case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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