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2006 (2) TMI 131 - HC - Income TaxDeduction under section 80M - it is clear that when no expenditure is incurred by an assessee in earning the dividend income, no notional expenditure could be deducted from the said income. Though the benefit under section 80M is posed on a net income, when no expenditure is incurred in earning the dividend income, the gross income would become the net income. Thus, there is no scope for any estimate of expenditure being made, or any amount being deducted as notional expenditure. – It is not the case of the Revenue that the assessee has actually incurred any amount, much less 2 1/2 per cent. as expenditure. Therefore, the Tribunal committed a serious error in passing the impugned order granting deduction to the extent of 2 1/2 per cent. on the basis of notional expenditure. – Tribunal was not justified in allowing the claim for deductions while considering the deduction under section 80M
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