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2013 (1) TMI 680 - HC - Income TaxDeduction u/s 80M on the 'gross dividend' - CIT(A) held that only the financial expenses incurred could be taken into consideration for working out the deduction and not the personnel and administrative & miscellaneous expenses - ITAT restricted the disallowance to the extent of Rs. 1,00,000/- instead of upholding the total disallowance of Rs. 6,66,035/- made by the A.O. - Held that:- No authority taking a contrary view that the Revenue is entitled to reduce from 'gross dividend' received, the presumptive expenditure in the absence of actual expenditure for determining the 'net dividend' income, has been cited. The Revenue did not conduct an enquiry to determine the actual expenditure incurred in earning the dividend income by the assessee, which is a manufacturing concern and also deals in trading of the hosiery goods. It is not an investment company. It has been the categorical stand of the respondent-assessee that the investment, on which the dividend income is earned, was old and the total dividend warrants received by the assessee were only 2 to 3 on the shares held of the sister concern. The appellant's counsel urged that the ITAT or for that matter CIT(A) had no basis before them to determine the expenses incurred in earning dividend income by approximation but we find that for that matter the grievance could be raised by respondent assessee and not the Revenue which has come in appeal - no substantial question of law arises in these appeals.
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