9911796707
TMI Blog1990 (1) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... 69,747, which consists of dividend of Rs. 10,500 received from the companies directly and dividend of Rs. 59,247 received from the firm, as its share. The ITO, however, gave deduction under section 80M of the Act on Rs. 53,614 in the following manner :-- " It is further seen that the assessee has claimed deduction under section 80M on dividend of Rs. 69,747 which consist of dividend of Rs. 10,500 received by the assessee and dividend of Rs. 59,247 received from the firm as his share. The assessee's share from the firm is declared at Rs. 93,611 and the registered tax deduction is claimed at Rs. 15,084 hence proportionate registered firms' tax will be deducted from dividend under section 80AA for the purpose of section 80M. It is further se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thereafter deduction under section 80M of the Act would be available to the assessee. With a view to complete my order, I reproduce below the relevant portion of the order of the CIT(Appeals) :-- " The method of computing the share in the firm is profit u/s. 67 of the I.T. Act in the case of a partner. U/s. 67(1)(a) the income-tax, if any, payable by the R.F. in respect of the total income of the previous year has to be deducted from the total income of the firm and the balance ascertained and apportioned along with the partners. U/s. 67(2), the share of a partner, in the income of a firm computed under sub-section (1)(a) shall be for the purpose of assessment be apportioned under the various heads of income in the same manner in which th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ary data is tabulated below :-- Per Assessee Per I.T.O. Per CIT(A) Share of dividend from the firm Rs. 59,247 Rs. 59,247 Rs. 59,247 Other dividend income Rs. 10,500 Rs. 10,500 Rs. 10,500 --------------------- ------------------- ------------------ Rs. 69,747 Rs. 69,747 Rs. 69,747 --------------------- ------------------- ------------------ Less : (a) Proportionate R.F. Tax Rs. 9,558 Rs. 9,558 (b) Proportionate expenses Rs. 6,575 -- --------------------- ------------------- ------------------ Qualifying amount for Sec. 80M relief Rs. 69,747 Rs. 53,614 Rs. 60,189 --------------------- ------------------- ------------------ 6. The learned representative for the assessee, reiterated the submissions, which were mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refer to section 67 of the Act, which stipulates the method of computing a partner's share in the income of the firm : " 67. (1) In computing the total income of an assessee who is a partner of a firm, whether the net result of the computation of total income of the firm is a profit or a loss, his share (whether a net profit or a net loss) shall be computed as follows :-- (a) any interest, salary, commission or other remuneration paid to any partner in respect of the previous year, and, where the firm is a registered firm or an unregistered firm assessed as a registered firm under clause (b) of section 183, the income-tax, if any, payable by it in respect of the total income of the previous year, shall be deducted from the total income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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