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2013 (3) TMI 538 - HC - Income TaxDeduction u/s 80M - whether the ITAT was correct in directing that deduction would be worked out after reducing the interest from the gross dividend income when the whole of the interest has been incurred by the assessee for the purpose of earning dividend and was liable to be deducted u/s 57 (iii) while computing the dividend income for the purpose of deduction u/s 80M - the assessee made investments in Unit Trust of India giving rise to the dividend income - Held that:- No error is found in the order passed by the Tribunal as though the assessee was maintaining Master Account, but the fact remains that the Tribunal has been able to find out as a fact that the loan from three Banks i.e. Bank of America, American Express Bank and Grindlays Bank, is related to purchases of the units by the assessee and interest paid for availing such loan alone is liable to be deducted for arriving at the net dividend income. Such calculation was accepted by the departmental representatives before the Tribunal. The finding of the Tribunal that the amount of interest as is relatable to the dividend income alone is liable to deducted from determining the dividend income is in accordance with the judgment in Distributors (Baroda) P.Ltd. case ( 1985 (7) TMI 1 - SUPREME COURT). It has been held that the dividend income is to be arrived at after adjusting the interest on loan availed for making investment, giving rise to dividend income and not the interest paid by the assessee on other borrowings during the relevant assessment year. No substantial question of law arises for consideration by this Court - against revenue.
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