1979 (1) TMI 1 - SCH - Income Tax

Whether deduction under section 80M of the I.T. Act 1961 is allowable on gross dividend or it is allowable only on net dividend arrived at after deducting the interest payable on moneys borrowed for the purpose of earning such dividend - Tribunal as a fact and which finding has become final has held that no part of the borrowings was made for the purpose of earning dividend and hence there was no question of deduction - question of law not arise

Summary

The Supreme Court dismissed the appeal against the High Court of Calcutta's order, which refused to refer a question of law regarding deduction under section 80M of the Income Tax Act, 1961. The Court found it unnecessary to refer the question as the Tribunal had already determined that no borrowings were made for earning dividends, making the deduction irrelevant. The appeal was dismissed with costs.