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TMI Blog1983 (1) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Appellate Tribunal referring for our answer the following question of law: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the entire amount of dividend of Rs. 59,944 instead of Rs. 23,976 is deductible from the total income in computing the chargeable profits as provided under clause (viii) of rule I of the First Schedule to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ession " chargeable profits " to mean the total income of the assessee computed under the I.T. Act, for any previous year or years, as the case may be, and adjusted in accordance with the provisions of the First Schedule. Rule I of the First Schedule provides for adjustments. Clause (viii) of this rule makes provision for the exclusion of " income by way of dividends from an Indian company or a co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me by way of dividends " in cl. (viii) refers to the gross income has been taken by the Punjab Haryana and the Himachal Pradesh High Courts [CIT v. Patiala Flour Mills Co. P. Ltd. (No. 2) [1980] 123 ITR 273 (P H) and Mohan Meakin Breweries Ltd. v. CIT (No. 2) [1979] 118 ITR 300 (HP)]. The view taken in these rulings is supported by the Supreme Court decision in Cloth Traders (P.) Ltd. v. Addl. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch income or profits and gains under the said Chapter VI-A, the amount of such income or profits and gains computed as aforesaid as reduced by the amount of such deduction." The Explanation however, has not been given any retrospective effect and so it will have application only for the assessment year 1981-82, and subsequent years. After coming into force of the Explanation, the deduction under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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