Search Results Page
Search Results
1 - 10 of 11 (0.36 seconds)Section 80AA in The Income Tax Act, 1961 [Entire Act]
Section 57 in The Income Tax Act, 1961 [Entire Act]
Sai University Act, 2018
Cloth Traders (P) Ltd., Etc vs Addl. Commr. Of Income Tax, ... on 4 May, 1979
In this decision in [1979] 118 ITR 243 (Cloth traders (P) Ltd. v. Addl CIT), the Supreme Court made it clear that what the legislature wanted to do under s. 80M was to provide not for the quantum of income but to deal with the character of the income, particularly in the context of the words "such income", which is dealt with in s. 80M. Therefore, it is clear that by enacting s. 80AA the Legislature has brought in the concept of quantum of income which is included in the gross total income of an assessee-company. Under s. 80B, sub-s. (5), "Gross total income" means the total income computed in accordance with the provisions of the I. T. Act, before making any deduction under Chapter VI-A or under s. 280-O. We are concerned with s. 280-O in this case and, therefore, before making any deduction under s. 80M, total income has to be computed in accordance with all the provisions of the Act. It is very clear that while computing income under the Act whatever dividend income has been received by the assessee-company concerned under the provisions of this Act has to be computed under the provisions of ss. 56 and 57 which deal with income from "other sources", that from April 1, 1968, for the purpose of assessment year 1969-70, the provisions of s. 80M have to be read in the light of s. 80AA even for assessment year 1969-70. And while computing which will be computed but while computing such net dividend income, what is material is that in the case of the assessee-company concerned, it if is carrying on business, its profits and gains under the head "Business income" or "profits and gains of business" have to be first computed and having ascertained the net figure, the assessee will then proceed to claim deduction under s. 80M in respect of the quantum of income from dividend which forms a part, a component, of the total business income. That is the only way in which all these provisions can be reconciled and can be brought together.
Section 56 in The Income Tax Act, 1961 [Entire Act]
Finance (No. 2) Act, 2019
Section 36 in The Income Tax Act, 1961 [Entire Act]
Commissioner Of Income-Tax vs J.K. Industries (P.) Ltd. on 20 April, 1978
10. It was pointed out that the principle that income falling under a specific head should be made chargeable under that head even if it is earned for business purposes, is to be worked out only for the limited purpose of computing the total income of an assessee. This decision of the Gujarat High Court was followed by the Calcutta High Court in CIT v. J.K. Industries (P.) Ltd. [1989] 125 ITR 218. It is thus clear that in the case of the present assessee, though the total income of the assessee is in the course of its business, it gets part of its income from dividends and computation of that income from dividends is to be done in accordance with the provisions of ss. 56 and 57 of the I.T. Act. But the computation having been so done, ultimately, it still forms part of the income of the business of the assessee and it is assessable as such as profits and gains of business carried on by the assessee. Under s. 36 of the I.T. Act, interest paid by an assessee for the purpose of carrying on its business is deducted in its entirely while computing profits and gains of the business and, therefore, it is not possible to allocate a portion of that interest as against income from dividends by stating that that interest had to be paid for the purpose of investing in shares held by the assessee.