1976 (12) TMI 47

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.... question referred to us, at the instance of the department, is as follows: " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the assessee-company is eligible for deduction under section 80M of the Income-tax Act, 1961, on the gross dividend income of Rs. 2,43,705 ?" The assessee-company earned a gross total income which inc....

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....g in section 80M of the Act should not be literally understood and interpreted and it has to be read in conjunction with the definition of "gross total income" appearing in section 80B(5) of the Act. In this sense, he would say that the gross total income means total income computed in accordance with the provisions of this Act before making any deductions under this Chapter (Chapter VI-A) or unde....

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....viewing the earlier provisions, came to the conclusion that the benefit to which the assessee would be entitled would be 50 per cent. of the gross total income without deducting the expenses, etc., connected with the earning of such income. A similar view was also expressed in Madras Auto Service v. Income-tax Officer [1975] 101 ITR 589 (Mad). But it has to be noticed that squarely the two Bench d....