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TMI Blog2019 (1) TMI 1531X X X X Extracts X X X X X X X X Extracts X X X X ..... a sum of Rs. 9.03 crores during the financial year relevant to assessment year 2003-04. Deduction under Section 80M of Income Tax Act (in short 'the Act') was claimed. The claim was accepted by the Assessing Officer while framing an order of assessment dated 24.03.2006 in terms of section 143(3) of the Act. 3. The Commissioner of Income Tax, however, in exercise of powers under section 263 of the Act, revised the assessment restricting the claim under section 80M of the Act to an amount of Rs. 7.9 crores being dividend declared by the assessee in the financial year relevant to assessment year 2003-04. According to the Commissioner, the amount of deduction claimed could not have exceeded the amount of dividend declared by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) in any previous year, no deduction shall be allowed in respect of such amount in any other previous year. Explanation.-For the purposes of this section, the expression "due date" means the date for furnishing the return of income under sub-section (1) of section 139.'. 7. The provisions of Section 80M provide for a deduction in respect of the income received by way of dividend by a domestic company and contains two limbs: the dividend received must be of a quantum equal to the dividend distributed by the recipient company and the distribution of the dividend itself should be prior to the due date of filing of the return of income. 8. In the present case, the appellant has declared dividend of a sum of Rs. 15.20 Crores for the periods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P. Ltd. ((2008) 300 ITR 422 (Bombay), which have taken views similar to the one expressed by us above. 11. The substantial questions of law admitted for resolution are as follows: 1. Whether on the facts and circumstances of the case, the Tribunal was right in holding that for the purpose of Section M, "dividend distributed" would include dividends declared in the earlier year but paid out in the current year? 2. Whether on the facts and circumstances of the case, the Tribunal was right in holding that dividend declared for a period when Section 80M was not in force but paid out after the section has come into effect, could be treated as part of the dividend distributed in the current year for the purpose of calculation of deduction u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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