2004 (7) TMI 36

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....r 1989-90 declaring an income of Rs. 1,93,810 on December 28, 1989. During the course of assessment proceedings, the Assessing Officer noticed that the respondent-company had received share of income from two trusts: namely, Satya Nand Trust No. 1 and Brij Mohan Lal Trust No. 1. The said trusts also held equity shares of M/s. Hero Cycles Limited. Accordingly, the share received from the trusts by the assessee included share in dividend income received by the trusts from M/s. Hero Cycles Limited. In addition to the income from the trusts, the assessee had its own income from other sources including dividend. The assessee claimed deduction under section 80M of the Income-tax Act, 1961 (for short "the Act"), in respect of dividend income recei....

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....ore, it could not be said that the assessee had earned the income from dividend from another domestic company which is an essential requirement for claiming deduction under section 80M of the Act. Mr. Akshay Bhan, learned counsel for the assessee, on the other hand, supported the findings recorded by the Commissioner of Income-tax (Appeals) and the Tribunal. He further placed reliance on CIT v. Trustees, T. Stanes and Co. Ltd., Staff Pension Fund [1993] 200 ITR 396 (Mad); CIT v. Gopalkrishna M. Singre [1995] 214 ITR 443 (Bom) and CIT v. T. Stanes and Co. Ltd., Staff Pension Fund [1995] 216 ITR 433 (Mad). We have heard counsel for the parties and perused the orders of the authorities below and we are satisfied that in view of the clear pr....