TMI Blog1993 (1) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... he exchange difference from the gross dividend income in India of Rs. 87,00,000 under section 57(i) of the Income-tax Act, 1961 ? 2. Whether, on the facts and in the circumstances of the case, the assessee was entitled to the said deduction of Rs. 60,151 out of the said gross dividend amount of Rs. 87,00,000 by virtue of the principle that the net dividend income was the assessee's real income taxable under the Income-tax Act, 1961 ? 3. Whether, on the facts and in the circumstances of the case, the gross dividend income of Rs. 87,00,000 without the deduction of the said amount of Rs. 60,151 is taxable in the hands of the assessee by virtue of section 8(1) of the Income-tax Act, 1961 ? " The assessee, Messrs. Pfizer Corporation, is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee claimed that the difference of Rs. 60,151 should be allowed as expenses for the purpose of realising the dividends under section 57(i) or as the amount expended wholly and exclusively for the purpose of making and earning the dividend income under section 57(iii). This claim is based on the presumption that the income was earned by the assessee only when he received the amount in dollars in the U. S. A. The claim of the assessee was rejected by the Income-tax Officer by holding that the amount of Rs. 60,151 was not allowable either under section 57(i) or under section 57(iii) of the Act. Aggrieved by the order of the Income-tax Officer, the assessee went in appeal before the Appellate Assistant Commissioner of Income-tax, who upheld t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el further submits that under section 57(i), the assessee is entitled only to claim any reasonable sum paid by way of commission or remuneration to a banker or any other person for the purpose of realising such dividend on his behalf. The amount claimed in this case does not fall under any of these heads. In reply, learned counsel for the assessee submits that the income received by the assessee being the amount received by him in U. S. dollars, its value in terms of rupees has to be treated as his income. According to him, the income of the assessee is only the net amount received by him in the U. S. A. and it is only that amount which can be subjected to tax in India and for that purpose it is necessary to-convert it in terms of rupees ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account of fluctuation in the rate of exchange, which is the case in the instant case or it may be because of the payment of commission or remuneration, etc., or any other expenditure contemplated by the aforesaid provisions. Section 57(i) and (iii) provide: "57. Deductions. -The income chargeable under the head' Income from other sources' shall be computed after making the following deductions, namely: (i) in the case of dividends, any reasonable sum paid by way of commission or remuneration to a banker or any other person for the purposes of realising such dividend on behalf of the assessee;.... (iii) any other expenditure (not being in the nature of capital expenditure) laid out or expended wholly and exclusively for the purpose of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
