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2019 (1) TMI 1531 - HC - Income TaxDeduction u/s 80M - revision u/s 263 - Deduction in respect of certain inter-corporate dividends - case of the Revenue is that the benefit of the dividend declared in respect of Assessment Year 2002 to 2003 cannot be taken by the Assessee particularly seeing as the provisions of Section 80M were themselves introduced only with effect from 01.04.2003 - whether “dividend distributed” would include dividends declared in the earlier year but paid out in the current year? Held that:- No fetter set out in the provision in this regard. Though the declaration of dividend by the appellant had been occasioned in the financial years 2001-02 as well as 2002-03, there is no dispute on the position that the dividend had in fact, been paid out by the assessee only during the relevant financial year and that too prior to the due date for filing the return. Accepting the submission of the Revenue, would, in our view tantamount to inserting a new condition in the statutory provision which is impermissible in law. We are thus in agreement with the Tribunal in their conclusion that the assessee is entitled to the deduction sought. We draw support in this regard from the decisions of the Division Bench of the Delhi High Court in the case of Commissioner of Income Tax V. Delhi Tourism & Transportation Development Corporation Ltd.(2013 (7) TMI 625 - DELHI HIGH COURT) and Commissioner of Income Tax V. Saumya Finance and Leasing Co. P. Ltd. (2008 (1) TMI 13 - BOMBAY HIGH COURT), which have taken views similar to the one expressed by us above. - decided in favour of assessee.
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