https://www.taxtmi.com/caselaws?id=9907 The High Court of Karnataka ruled in favor of the assessee, determining that notional deductions are not permissible under section 80M of the Income-tax Act. The Court held that deductions should be based on actual expenditure incurred in earning dividend income, not on estimates or notional amounts. As the assessee had not actually incurred any expenditure, the Tribunal's decision to allow a deduction based on notional expenditure was deemed erroneous. The Court emphasized that no estimate or notional deduction should be made when no actual expenditure is involved in earning dividend income. en-us Tue, 07 Feb 2006 00:00:00 +0530 Thu, 02 Jul 2009 18:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9907 The High Court of Karnataka ruled in favor of the assessee, determining that notional deductions are not permissible under section 80M of the Income-tax Act. The Court held that deductions should be based on actual expenditure incurred in earning dividend income, not on estimates or notional amounts. As the assessee had not actually incurred any expenditure, the Tribunal's decision to allow a deduction based on notional expenditure was deemed erroneous. The Court emphasized that no estimate or notional deduction should be made when no actual expenditure is involved in earning dividend income. Case-Laws Income Tax Tue, 07 Feb 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9907