https://www.taxtmi.com/caselaws?id=37118 The High Court of Bombay held that the deduction of tax on inter-corporate dividends in the hands of the assessee was properly allowed under Section 85A of the Income-tax Act, 1961. The Court determined that the deduction is based on the average rate of tax on the total income, not solely on dividend income. The Court emphasized that Section 85A does not specify a particular rate for dividend income but allows for a deduction from the general average rate. Consequently, the Court upheld the calculations made by the Income Tax Officer and ruled in favor of the revenue, requiring the assessee to pay the costs of the reference. en-us Wed, 28 Feb 1979 00:00:00 +0530 Fri, 26 Mar 2010 16:31:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37118 The High Court of Bombay held that the deduction of tax on inter-corporate dividends in the hands of the assessee was properly allowed under Section 85A of the Income-tax Act, 1961. The Court determined that the deduction is based on the average rate of tax on the total income, not solely on dividend income. The Court emphasized that Section 85A does not specify a particular rate for dividend income but allows for a deduction from the general average rate. Consequently, the Court upheld the calculations made by the Income Tax Officer and ruled in favor of the revenue, requiring the assessee to pay the costs of the reference. Case-Laws Income Tax Wed, 28 Feb 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37118