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2014 (11) TMI 553 - HC - Income TaxRelief u/s 80M – Investment made from owned funds - Whether the Tribunal is right in treating the investment as having been made by the assessee from his own funds for granting relief u/s 80M - Held that:- The Tribunal rightly observed that the amount of interest on borrowings for purchase of shares has to be deducted from the gross total income - The decision rendered in the case of Distributors (Baroda) Pvt. Ltd vs. Union of India & Others [1985 (7) TMI 1 - SUPREME Court] was considered by the Tribunal wherein it is held that the deduction required to be allowed u/s 80M has to be calculated with reference to amount of dividend computed in accordance with the provisions of the Income Tax Act and forming part of the gross dividend received by the assessee - the CIT(A) was justified in holding that the interest attributable to acquisition of shares of domestic companies has to be deducted from the gross total income which includes dividend from the domestic companies before computation of deduction u/s 80M of the Act – Decided against revenue.
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