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2014 (11) TMI 104 - HC - Income TaxAllowability of deduction u/s 80M - Whether the Tribunal was right in holding that general establishment charges like audit fees, salary etc. could not be reduced from the dividend income for the purpose of allowing deduction u/s 80M of the Income Tax Act – Held that:- The Tribunal recorded the statement of the Assessee that there are no expenses incurred by the Assessee for earning the dividend – relying upon Commissioner of Income Tax V/s. United Collieries Ltd. [1992 (4) TMI 18 - CALCUTTA High Court] - no expenses were incurred for earning the dividend income, is a position which could not be controverted by the Revenue by bringing any material on record - the Assessee's claim for deduction u/s 80M could not have been reduced - only expenses directly incurred to earn dividend ought to be reduced while computing deduction u/s 80M and the Revenue cannot proceed to deduct some amount as expenses on notional basis – thus, the order of the Tribunal is upheld – Decided against revenue.
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