Case Law Details

Case Name : The Commissioner of Income Tax. Vs M/s. J. B. Boda & Co.P. Ltd. (Bombay High Court)
Appeal Number : Income Tax Appeal no. 3224 OF 2009
Date of Judgement/Order : 18/10/2010
Related Assessment Year :
Courts : All High Courts (3629) Bombay High Court (654)

HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION

INCOME TAX APPEAL NO. 3224 OF 2009

The Commissioner of Income Tax.

V/s.

M/s. J. B. Boda & Co.P. Ltd.

CORAM : V.C. DAGA AND R.M.SAVANT, JJ.

DATED :  18th  October 2010.

P.C. :

Perused appeal.

Heard learned counsel for the appellant­ Revenue and learned senior counsel for the respondent.

2. The question sought to be raised in this appeal relates to the deduction under section 80O of the Income  Tax  Act,   1961   (“Act”   for   short).     The   Tribunal   has  considered   this   question   taking   into   account   the calculations made by the Assessing Officer; wherein he has  determined the deduction under section 80­O in the sum of  Rs.1,29,41,830/­ being the 50% of the income so received or  brought   into   India.     This   figure  is   not   disputed   by   the  learned counsel for the Revenue.   The only question sought  to   be   canvassed   is  that  out   of   these   deductions   the  admissible deduction under section 80­-O ought to be limited  to   the  extent of Rs.69,70,127/­  which  represents  business  income.     In   other   words,   the   income   from   interest   and dividend shall not form part of the gross total income as defined under section 80B(5) of the Act.  The submission is
misconceived.  If one turns to the definition of the “gross  total income“ under section 80B­5, it reads as under:

“80B(5) “gross   total   income”   means   the total income computed in accordance with the provisions   of   this   Act,   before   making   any deduction under this Chapter.”

3. Considering   the   definition   of   the   gross   total  income,   it   is   difficult   to   hold   that   the   interest income  and the dividend income would not form part of the gross total income computed in accordance with the provisions of   the Act.  The view taken by the Tribunal, in our considered  view,     is   in   consonance   with   what   is   stated   herein.     No  substantial   question   of   law   is   involved.     In   the   result,  appeal is dismissed in limine with no order as to cots.

(R.M.SAVANT, J.)     (V.C.DAGA J.)

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Category : Income Tax (24907)
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