https://www.taxtmi.com/caselaws?id=21947 For computing chargeable profits under rule 1(viii) of the First Schedule to the Companies (Profits) Surtax Act, dividend income is excluded only to the extent it was actually included in the assessee's total income under the Income-tax Act. The deduction scheme under section 80M, read with section 80AA, links relief to dividend income computed and brought into total income after statutory deductions, not to the gross dividend amount. In view of Distributors (Baroda), the earlier gross-dividend approach based on Cloth Traders no longer applies. The exclusion under rule 1(viii) is therefore confined to net dividend included in total income. en-us Tue, 16 Jul 1991 00:00:00 +0530 Fri, 04 Dec 2009 13:56:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21947 For computing chargeable profits under rule 1(viii) of the First Schedule to the Companies (Profits) Surtax Act, dividend income is excluded only to the extent it was actually included in the assessee's total income under the Income-tax Act. The deduction scheme under section 80M, read with section 80AA, links relief to dividend income computed and brought into total income after statutory deductions, not to the gross dividend amount. In view of Distributors (Baroda), the earlier gross-dividend approach based on Cloth Traders no longer applies. The exclusion under rule 1(viii) is therefore confined to net dividend included in total income. Case-Laws Income Tax Tue, 16 Jul 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21947