2018 (1) TMI 143

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....on 80M of the Income Tax Act, without appreciating the fact that the Assessing Officer in the assessment order had clearly established the nexus between the investments made during the year and the borrowed funds ? (2) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in deleting the disallowance under Section 80M of the Income Tax Act relying on the decision of the Bombay High Court in the case of Reliance Utilities and Power Ltd and HDFC Bank Ltd. without appreciating the fact that in the case relied upon, the Assessing Officer had not proved the required nexus between the investments made during the year and the borrowed funds and as such the facts in that case are different from th....

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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 sub-section (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 expressions "due date" means the date for furnishing the return of income under sub-section (1) of section 139." Section 80AA which has been since omitted with effect from the Finance Act 1st April, 1998. Section 80AA read thus : "Where any deduction is required to be allowed under section 80M in resp....

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....n that of the dividend received of Rs. 20,71,91,688/- and hence provisions of Section 80AA will not enable the assessee to claim deduction under Section 80M. 6. Penalty proceedings were also initiated under Section 271(1)(c). The Commissioner of Income Tax (Appeals) [CIT (A)] after considering the respondents' contention observed that the Assessing Officer has worked out cash flow on the basis of figures mentioned in the assessment order but these figures could not be reconciled with the figures on the balance sheet of the company and hence the figures were not verifiable. The Assessing Officer was therefore directed to verify the interest payable/paid as above and allocate. Both, the revenue and assessee were in appeal before the Tr....