TMI Blog1986 (9) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... the instance of the assessee to answer the following question of law: " Whether, on the facts and in the circumstances of the case and on a correct interpretation of section 80M of the Income-tax Act, 1961, the Income-tax Appellate Tribunal was justified in holding that deduction under section 80M should be given on the net dividend income, i.e., after deducting proportionate expenses ? " The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o failed. The Tribunal also rejected the assessee's contention that the benefit in accordance with section 80M of the Act is to be computed on the basis of the gross dividend income instead of net dividend income. Aggrieved by the view taken by the Tribunal, the assessee sought a reference to this court which has led to the above question of law being referred to this court for our decision. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at this benefit under section 80M was to be computed on the basis of the net dividend income and not gross dividend income. This amendment led to a challenge to its constitutional validity before the Supreme Court and the decision of the Supreme Court in that case is reported in Distributors (Baroda) P. Ltd. v. Union of India [1985] 155 ITR 120. A larger Bench of the Supreme Court took the view th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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