1985 (5) TMI 67

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....IT (A) holding that assessee is entitled to exemption under s. 80K of the IT Act in respect of its share in dividend income of Rs. 36,000 received by it from M/s Anand Industrial Finance Corporation in which firm the assessee is a partner. It may be sated that reference to s. 80J in the ground of appeal of the Revenue alongwith s. 80K is unnecessary. The argument of the Revenue noted in the ground....

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....s got allocated to assessee's share. 3. We have heard rival submissions. The arguments of he revenue, in brief, are already noted in the ground of appeal no. 1. The assessee's counsel, Shri Prem Singh, firstly clarified that he was claiming the relief under s. 80K in the case of assessee irrespective of the same relief having been claimed in the case of M/s Anand Industrial Finance Corporation,....

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....rson who is chargeable to tax under this Act on the income by way of dividends on any share or share in a company owned by any other person. includes any income by way of dividends paid or deemed to have been paid by the company in respect of such share or shares,........." As per the above, it is obvious that the deduction under s. 80K will be available either to the owner of any share or s....

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....mount to an unintended benefit of a deduction in the hands of two persons. A perusal of cl. (b) clearly beings out that it will operate in the case of a beneficial owner in whose hands the dividend is brought to tax and not in the case of the legal owner by virtue of the fact that his name still stood registered in books of the Limited Company. We may further point out that dividend income is char....