https://www.taxtmi.com/caselaws?id=175602 The Supreme Court held that deduction under section 80M is permissible only on net dividend income as per the Income-tax Act provisions, not on gross dividend. The court emphasized that section 80AA clarifies that the deduction under section 80M is based on net dividend income. The Assessing Officer's estimation of expenditure for earning dividend income was considered valid. The Madhya Pradesh High Court stressed the need to consider actual expenditure, not notional expenditure, for section 80M deduction. The High Court found the bifurcation of expenditure between business and dividend income arbitrary and remanded the matter for reassessment. en-us Wed, 19 May 2010 00:00:00 +0530 Sat, 28 Nov 2015 12:18:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=175602 The Supreme Court held that deduction under section 80M is permissible only on net dividend income as per the Income-tax Act provisions, not on gross dividend. The court emphasized that section 80AA clarifies that the deduction under section 80M is based on net dividend income. The Assessing Officer's estimation of expenditure for earning dividend income was considered valid. The Madhya Pradesh High Court stressed the need to consider actual expenditure, not notional expenditure, for section 80M deduction. The High Court found the bifurcation of expenditure between business and dividend income arbitrary and remanded the matter for reassessment. Case-Laws Income Tax Wed, 19 May 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=175602