1974 (10) TMI 22

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..... AMASWAMI J.--This is a petition for issue of a writ of prohibition directing the Income-tax Officer, Circle II, not to proceed with the proposed revised assessment for the assessment year 1966-67, in pursuance of his notice dated March 2, 1971, in G.I. No. I-M/1966-67. The petitioner was assessed for the assessment year 1966-67 by an order dated November 26, 1966, as rectified in the order dated .....

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..... me and the dividend income. Though in the resultant figure of the total assessable income no change happened because of this reallocation, the result of such reallocation deprived the assessee of the benefit of sections 85 and 85A in respect of the dividend income. After this assessment for the assessment year 1970-71, the Income-tax Officer issued a notice under section 147(b) proposing to revise .....

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..... ome-tax Officer was further of the view that the relief available under sections 80M and 80K in respect of dividend income is with reference to only the net income and not the gross dividend. It is in this view he considered that income has been made the subject of excessive relief in the assessment year 1966-67. In a recent judgment in Commissioner of Income-tax v. Madras Motor and General Insura .....

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..... h this distinction made by the learned counsel. The language in section 99(1)(iv) and section 80K are similar and in both cases the rebate is to be allowed on the dividend income. There being no restrictive words similar to " net dividend " in the section we are unable to accept the contention that the rebate is to be allowed only on the net dividend. If this view were to be accepted then we canno .....

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..... ceeded with when clearly there would not be any grant of excessive relief in the light of the judgment in Commissioner of Income-tax v. Madras Motor and General Insurance Co. Ltd. (T.Cs. Nos. 119 and 120 of 1968). This ground itself is enough to issue the writ of prohibition prayed for. We are, therefore, not going into other questions particularly as to whether the Income-tax Officer could be s .....

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