TaxTMI 
TaxTMI 
2013 (9) TMI 753
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....nd in the circumstances of the case the ld. Tribunal was legally correct in holding that the adjustment made in the returned income on account of the claim under Section 80 M of the I.T. Act was beyond the scope of the provisions of Section 143 (1) (a) of the I.T. Act 1961." Brief statement of case, giving rise to this reference is as follows:- "The assessee is a private limited company for the period ending 31.3.1990 relevant to the assessment year 1990-91. It filed its return on 31.12.1990, declaring taxable income at nil. The sources of assessee's income were share in a partnership firm styled M/s. Raj Kumar Singh and Co., and dividend income. As per the statement of computation of total income, share income from the firm was disclosed....
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....filed an appeal before the Ld. Commissioner of Income Tax (Appeals). The Ld. Commissioner of Income Tax (Appeals) after considering the facts of the case and the submission of the assessee observed that what the assessee received from M/s. Raj Kumar Singh and Company was the share income and not the dividend income directly received by it from another company. Accordingly, it was held that the deduction claimed by the assessee was prima facie inadmissible and as such, the Assessing Officer was justified in rejecting the assessee's application under Section 154 of the Income Tax Act. Vide order A. No. 51/DC/R-II/Lko/92-93 dated 26.3.1993, the assessee's appeal was dismissed. Aggrieved by the order of the first Appellate Authority, the asses....
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....f the Act, as it then stood prior to its deletion by the Finance Act 2003, w.e.f. 1.4.2004, read as under:- "80 M Deduction in respect of certain inter-corporate dividends. (1) Where the gross total income of a domestic company, in any previous year, includes any income by way of dividends from another domestic company, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of such domestic company, a deduction of an amount equal to so much of the amount of income by way of dividends from another domestic company as does not exceed the amount of dividend distributed by the first-mentioned domestic company on or before the due date." In order to claim deduction under Section....