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Commissioner of Income-tax Vs. Supreme Credit Corporation (P.) Ltd. - Court Judgment

SooperKanoon Citation
SubjectDirect Taxation
CourtKolkata High Court
Decided On
Case NumberIncome-tax Reference No. 248 of 1977
Judge
Reported in[1986]162ITR880(Cal)
ActsIncome Tax Act, 1961 - Sections 57, 80AA and 80B(5); ;Finance (No. 2) Act, 1980
AppellantCommissioner of Income-tax
RespondentSupreme Credit Corporation (P.) Ltd.
Appellant AdvocateS. Chakraborty, Adv.
Respondent AdvocateR. Murarka, Adv.
Excerpt:
- .....and ona correct interpretation of section 80b(5) of the income-tax act, 1961,defining the term 'gross total income', the assessee is entitled to reliefunder section 80m of the income-tax act, 1961, in respect of the gross amount of dividends from domestic companies and not in respect of the net amount of such dividends computed in accordance with the provisions of section 57 of the said act ?'2. in view of the provisions of section 80aa of the income-tax act, 1961, inserted by the finance (no. 2) act, 1980, with restrospective effect from april 1, 1968, we answer the question by saying that the assesste will not be entitled to relief under section 80m in respect of the gross amount of dividends but it will be entitled to relief under the said section only in respect of the net amount.....
Judgment:

R.N. Pyne, J.

1. In this reference under Section 256(1) of the Income-tax Act, 1961, which relates to the assessment year 1973-74, the following question of law has been referred to this court for its opinion:

'Whether, on the facts and in the circumstances of the case, and ona correct interpretation of Section 80B(5) of the Income-tax Act, 1961,defining the term 'gross total income', the assessee is entitled to reliefunder Section 80M of the Income-tax Act, 1961, in respect of the gross amount of dividends from domestic companies and not in respect of the net amount of such dividends computed in accordance with the provisions of Section 57 of the said Act ?'

2. In view of the provisions of Section 80AA of the Income-tax Act, 1961, inserted by the Finance (No. 2) Act, 1980, with restrospective effect from April 1, 1968, we answer the question by saying that the assesste will not be entitled to relief under Section 80M in respect of the gross amount of dividends but it will be entitled to relief under the said section only in respect of the net amount of such dividends computed in accordance with the provisions of Section 57 of the Income-tax Act. The question is answered in the negative and in favour of the Revenue.

3. There will be no order as to costs.

Ajit K. Sengupta, J.

4. I agree.


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