Case Law Details
Case Name : Dy. CIT Vs KRA Holding & Trading Pvt Ltd (ITAT Pune)
Appeal Number : ITA No. 1058/PN/09
Date of Judgement/Order : 19/01/2011
Related Assessment Year : 2003- 04
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Dy. CIT, Pune Vs KRA Holding & Trading Pvt Ltd (ITAT Pune)- The view of the assessing officer was consistent with the decision of the Tribunal in the case of Castle Investment (supra). The judgement in Castle Investment insofar as is material held that Section 1150(5) does not in any way restrict the allow ability of the claim under section 80M. Under Section 80M what is claimed as a deduction is the dividend received by the company. Dividends declared, distributed or paid are not claimed as deduction under Section 80M though they constitute an outflow of funds from the company. Section 80M imposes a monetary restriction on the amount that may be claimed by way of a deduction by providing that the amount of claim cannot exceed the dividend distributed by the assessee by the due date.
Though the judgement of the Tribunal in Castle Investment was dated 18thJuly, 2007 (the order of assessment being dated 28thFebruary, 2006) it is necessary to note that the decision followed the earlier decision of the Tribunal dated 10th May, 2002 in the case of Silvassa Industries and the decision dated 7th October, 2004 in M/s. Kaikobad Byramjee (supra). The decision of the Tribunal in Castle Investment(supra) was affirmed by a Division Bench of this Court on 22nd July, 2008 in ITA 1557 of 2007.
IN THE INCOME TAX APPELLATE TRIBUNAL
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