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2010 (2) TMI 27 - HC - Income TaxNotice u/s 148 – AO reopening the assessment stated that the issues involved as mentioned in the recorded reasons is that, the assessee claimed deduction u/s.80M of the Act in respect of dividend distributed by the assessee company, wherein the assessee failed to pay additional income tax as per provisions of section 115-O within the stipulated time. Since the assessee has not complied the provisions of section 115-O of the Act, then the deduction u/s.80M is not allowable to the assessee. – held that – . Under Section 80-M the deduction is not in respect of the amount declared or distributed by way of dividend. The deduction that was stipulated under Section 80-M was in respect of dividend received by a domestic company from another domestic company. The extent of the deduction was, however, subject to a monetary ceiling, the ceiling being that the deduction should not exceed the amount distributed by way of dividend on or before the due date for the filing of a return. The assessing officer by adverting to the provisions of Section 115-O has proceeded to reopen the assessment on a plainly extraneous ground. - assessing officer has clearly acted in excess of the restraints on his jurisdiction to reopen an assessment in exercise of the powers under Section 147 read with Section 148 – notice u/s 148 quashed.
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