TaxTMI 
TaxTMI 
2014 (12) TMI 978
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.... the Petitioner had disclosed the dividend received of Rs. 1.21 Crores and claimed deduction of the same under Section 80M of the Act. This claim for deduction satisfied the condition therein that it shall not be more than the amount of dividend distributed by the Petitioner to its share holders before the due date of filing of return of income for the Assessment Year 2003-04 i.e. 31st October, 2003. In this case, the Petitioner had on 6th October, 2003 declared dividend of Rs. 1.22 Crores. Thus the Assessing Officer accepted the claim for deduction under Section 80M of the Act in his order dated 27th March, 2006 passed under Section 143(3) of the Act in the regular assessment proceeding. 3. On 27th December, 2006, the Assessing Officer ....
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....r by letter dated 15th January, 2007 objected to the reasons recorded in support of the impugned notice. The Petitioner pointed that deduction under Section 80 M of the Act was correctly taken in accordance with law for Assessment Year 2003-04. It was pointed out that Section 115 O of the Act came into force w.e.f. 1st April, 2003 and therefore was applicable only on and from Assessment Year 2004-05. By an order dated 29th January, 2007, the Assessing Officer rejected the Petitioner's objection that in view of Section 115 O (5) of the Act, the Petitioner has forfeited its claim for deduction under Section 80 M of the Act. 5. Mr. Jasani, learned Counsel appearing for the Petitioner states that the issue raised in the present Petition ....
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....es not exceed the amount of dividend distributed by the first mentioned domestic company on or before the due date." (2) Where any deduction in respect of the amount of dividend distributed by the domestic company, has been allowed under subsection (1) in any previous year, no deduction shall be allowed in respect of such amount in any other previous year. Explanation:- For the purposes of this section, the expression "due date" means the date for furnishing the return of income under subsection (1) of section 139. 115 O (1):- Notwithstanding anything contained in any other provision of this Act and subject to the provisions of this section, in addition to the income tax chargeable in respect of the total income of a domestic co....
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.... Agrovet (supra) also the assessment was being sought to be reopened for Assessment Year 2003-04 as in this case on similar grounds. This Court in Godrej Agrovet (supra) inter alia held that under Section 147 of the Act, the Assessing Officer has a power to reopen the assessment by issuing a notice for the same provided that he has reason to believe that income escaped assessment. The reopening of an assessment cannot be on a mere change of opinion. The Court further held that the basis of reopening of the assessment was the payment of dividend under Section 115 O of the Act. The Court held that Section 80M of the Act as it stood during the Assessment Year 2003-04 allowed an assessee to claim deduction under Section 80 M of the Act so long ....