1985 (5) TMI 11

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... question referred to us for the assessment year 1971-72 is: " Whether, on the facts and in the circumstances of the case, the Tribunal were legally correct in holding that relief under section 80M of the Income-tax Act, 1961, is to be allowed with reference to the gross dividends without taking into consideration expenditure relating to these dividends ? " This question was referred at a ti....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....oth Traders (P.) Ltd. v. Addl. CIT [1979] 118 ITR 243. We think we cannot wait for the judgment of the Supreme Court but we make an observation here that in case the provision is held ultra vires, the assessee will then be entitled to apply for review in accordance with the decision given by the Supreme Court, or to move any other appropriate proceeding to give effect to that judgment qua itself. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ss dividend is to be deducted under section 80M. Since the legal position has now changed, it will be open to the assessee to show how much is the deduction (if any) to be made from the gross dividend. It will be open to the assessee to show before the Tribunal that no deduction has to be made on account of interest incurred for earning this gross dividend. In fact, the learned counsel for the ass....