1983 (1) TMI 44

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.... the court was delivered by G. P. SINGH C.J.-This is a reference made by the Income-tax Appellate Tribunal referring for our answer the following question of law: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the entire amount of dividend of Rs. 59,944 instead of Rs. 23,976 is deductible from the total income in computing the charg....

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....944. Section 2(5) of the Companies (Profits) Surtax Act, 1964, defines the expression " chargeable profits " to mean the total income of the assessee computed under the I.T. Act, for any previous year or years, as the case may be, and adjusted in accordance with the provisions of the First Schedule. Rule I of the First Schedule provides for adjustments. Clause (viii) of this rule makes provisio....

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....hould be deducted u/cl. (viii) it would have said so clearly. The view that " income by way of dividends " in cl. (viii) refers to the gross income has been taken by the Punjab & Haryana and the Himachal Pradesh High Courts [CIT v. Patiala Flour Mills Co. P. Ltd. (No. 2) [1980] 123 ITR 273 (P & H) and Mohan Meakin Breweries Ltd. v. CIT (No. 2) [1979] 118 ITR 300 (HP)]. The view taken in these ruli....

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....of), and in case where any deduction is required to be allowed in respect of any such income or profits and gains under the said Chapter VI-A, the amount of such income or profits and gains computed as aforesaid as reduced by the amount of such deduction." The Explanation however, has not been given any retrospective effect and so it will have application only for the assessment year 1981-82, a....