High Court Of Calcutta
CIT vs. Andhra Metal (P) Ltd.
Sections 80M, 80AA
Dipak Kumar Sen, Actg. C.J. & Shyamal Kumar Sen, J.
IT Ref. No. 434 of 1977
25th January, 1988
Counsel Appeared
M.L. Bhattacharjee, for the Revenue
DIPAK KUMAR SEN, ACTG. C.J.:
On an application of the Revenue under s. 256(1) of the IT Act, 1961, the Tribunal has referred the following question as a question of law arising out of its order for the opinion of this Court:
” Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee was entitled to relief under s. 80M of the IT Act, 1961, on the gross amount of dividend received from domestic companies and not in respect of the net dividend ? “
2. It appears that subsequent to the order of the Tribunal which was passed on August 23, 1976, a new s. 80AA was inserted in the IT Act, 1961, by the Finance (No. 2), Act, 1980, with retrospective effect from April 1, 1968. The said section reads as follows: ” 80AA. Where any deduction is required to be allowed under s. 80M in respect of any income by way of dividends from a domestic company which is included in the gross total income of the assessee, then, notwithstanding anything contained in that section, the deduction under that section shall be computed with reference to the income by way of such dividends as computed in accordance with the provisions of this Act (before making any deduction under this Chapter) and not with reference to the gross amount of such dividends.” Sec. 44 of the Finance (No. 2) Act, 1980, provides for savings in certain cases which are not attracted to the facts of the instant case.
For the reasons as aforesaid, in view of the said s. 80AA of the IT Act, 1961, the question has to be answered in the negative and in favour of the Revenue.
The reference is disposed of accordingly without any order as to costs.
SHYAMAL KUMAR SEN, J.:
I agree.
[Citation : 172 ITR 153]
