2005 (2) TMI 24

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.... income-tax reference made at the instance of the assessee by the Tribunal under section 256(1) of the Income-tax Act, 1961, in R.A. No. 108/Ind/91 which arises out of an appellate order dated May 5, 1991, passed by the Tribunal in I.T.A. No. 701/Ind/85 to answer the following question of law: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in holdin....

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....d. The Assessing Officer then determined the deduction available under section 80TT of the Act for the year in question, i.e., 1978-79 (since repealed). In the opinion of the Assessing Officer, the assessee was entitled to claim deduction under section 80TT ibid at Rs. 5,37,500 as income from lottery at Rs. 10,80,000 whereas the assessee claimed deduction at Rs. 5,97,500 on the entire amount of....

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.... on the net income of the assessee, i.e., Rs. 10,80,000 after deducting the commission paid to the agent and not on Rs. 12,00,000. It is against this view of the Tribunal, the assessee prayed for reference to this court under section 256(1) of the Act. The Tribunal accepted the prayer so made by the assessee and made the reference on the question so formulated supra to this court for answering the....

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.... the same case reported in Cloth Traders (P.) Ltd. v. Addl. CIT [1979] 118 ITR 243. It is in this case, i.e., Distributors (Baroda) P. Ltd. v. Union of India [1985] 155 ITR 120 (SC) their Lordships while interpreting the language employed in section 80M held that deduction has to be computed on the net income of the assessee and not on the gross amount. Indeed, the earlier view that it should be c....