TMI Blog2008 (1) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... case and in law, the Hon'ble Tribunal was justified in dismissing the appeal of the Revenue by relying upon its own order vide ITA No.462/Mum/2002 dated 10.05.2002 in the case of M/s.Silvassa Industries (P) Limited and directed the A.O. to allow the deduction u/s.80M of the I.T.Act of Rs.2,19,97,105/- as against Rs. Nil ? (ii) Whether on the facts and in the circumstances of the case and in law the Hon'ble Tribunal is correct in law in allowing deduction u/s.80M of the I.T.Act of Rs.2,19,97,105/- for A.Y. 1997-98 even though the dividend distributed is Interim Dividend related to A.Y. 98-99? 2. The brief facts of the case are as follows :- (a) During the financial year 1996-97, Assessee Company filed a return which included dividend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allenged by way of an appeal. It is then contended that the interim dividend was declared by the Assessee Company in the financial year 1997-98 and out of income accrued in the said year. His further contention was that the dividend declared and paid in a subsequent year could not be a permitted deduction from the income in a previous year since the said dividend was paid out of income accruing in the subsequent year. 4. To appreciate the contention raised by the revenue, it is necessary to reproduce ("80M" as then existing) which was as under : " 80M. Deduction in respect of certain intercorporate dividends. (1). Where the gross total income of a domestic company, in any previous year, includes any income by way of dividends from ano ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany must be for the financial year under assessment. Laying down such restricting qualification, in our view, will amount to doing violence to the plain and clear meaning of the words as contained in Section 80M. 7. Counsel appearing for the revenue sought to argue that where the literal meaning of the words contained in any provision of law, would lead to an absurd result i.e. a result not intended to be subserved, by the object of the legislation and if another construction is possible apart from strict literal construction, then that construction should be preferred to the strict literal construction. According to counsel for revenue, if a literal construction is given to Section 80M then it would lead to an absurd result, since th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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