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2013 (7) TMI 625 - HC - Income TaxDeduction u/s 80M - Dividend received from UTI - CIT(A) rejected deduction u/s 80M as dividend distribution was related to earlier years - Tribunal granted deduction - Held that:- Section 80M(1) for the purpose of interpretation can be segregated into two parts or postulates two requirements. The first requirement is that gross income of a domestic company in the previous year should include income by way of dividend from another domestic company. The said condition it is accepted is satisfied as the respondent-assessee had received dividend from another domestic company - The second part of Section 80M(1) states that in the year in which the dividend was received, the assessee company would be allowed a deduction of an amount equal to and not exceeding the amount of dividend distributed on or before the due date - Dividend was paid to the shareholders of the assessee before due date - second part of Section 80(1) of the Act, does not specifically postulate or prescribes the requirement that dividend distributed must match or relate to the assessment year itself - Payment of dividend in several cases may spill over and distribution can and does take in the subsequent year - Following decision of The Commissioner of Income-tax Versus M/s. Saumya Finance & Leasing Co. (P) Ltd. [2008 (1) TMI 13 - BOMBAY HIGH COURT] - Decided against Revenue.
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