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2018 (7) TMI 1562 - HC - Income TaxClaim of deduction u/s 80M - Expenses notionally allocable to the earning of dividend income - Held that:- Only actual expenses incurred for earning dividend income ought to be taken into account while determining the deduction under Section 80M of the Act. Thus, there is no question of making allocation of expenditure on notional basis to earn dividend income, to determine the deduction of dividend under Section 80M of the Act. The contention on behalf of the Revenue that the Tribunal has rendered a finding of fact of ₹ 5 lakhs being incurred for earning dividend income, has not been challenged, is not correct. The very basis of allocating expenses on a notional basis to reduce the dividend, entitled to the benefit of Section 80M of the Act, is the subject matter of challenge before us. Therefore, even if the finding of fact viz. Notional expenditure has been incurred is not specifically challenged, the law is settled that it cannot be reduced from the dividend income for deduction under Section 80M of the Act. Expenses on account of stamp duty - Held that:- We find that the impugned order of the Tribunal itself records that the same has been disallowed by the Assessing Officer. In any case, this Court in General Insurance Corporation (2000 (9) TMI 12 - BOMBAY HIGH COURT) has held that expenses incurred on account of stamp duty for transfer of shares is not directly related to earning of dividend income. Therefore, it cannot be reduced from the dividend income earned while computing the deduction under Section 80M of the Act. - Revenue appeal dismissed.
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