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2005 (3) TMI 715 - ITAT BANGALOREDeductions u/s 80M - Intercorporate dividends - expenses incurred on employees of the company - HELD THAT:- The learned counsel for assessee submitted that as there is no expenses at all have been incurred in the earning of dividend income, the Assessing Officer has to compute the deduction on the entire gross dividend. The Assessing Officer should not have restricted it to 95% of the gross dividend. At the time of hearing, learned counsel for assessee also relied on the decision of the Tribunal in the case of Canbank Financial Services Ltd. Applying the same, we allow the ground raised by the assessee on this issue. The case of the assessee is that the Hon’ble Supreme Court in the case of Mysore Minerals Ltd. v. CIT [1999 (9) TMI 1 - SUPREME COURT] held that for the purpose of allowance of depreciation in income-tax assessment, the assessee need not be registered owner of the property in question. From the records, it is seen that in fact, the assessee had raised the ground before the CIT(A) but in view of the decision of the Karnataka High Court in the case of CIT v. Bharath Gold Mines Ltd.[1991 (2) TMI 56 - KARNATAKA HIGH COURT], assessee seriously did not contest this issue. However, as of now, the decision of the Hon’ble Supreme Court will hold the field. We are of the view that the additional ground has to be taken on file. Further, in view of the decision of the Hon’ble Supreme Court, we find force in the stand taken by the assessee and therefore, the additional ground raised by the assessee is allowed. It is ordered accordingly. In the result, the appeal filed by the assessee is allowed.
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