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The Tax Publishers DCIT v. Kargil Holding (P.) Ltd. [ITA No. 6527/Mum/2007, dt. 29-4-2016] : 2016 TaxPub(DT) 2932 (Mum-Trib) Section 80M pass through dividend v section 115O(5) *Facts:* Assessee was part of the Nirma group of companies owned by Mr. Karsanbhai Patel. The said assessee was in receipt of dividend on 13-9-2002 and 10-10-2002 from two companies one of which was Nirma Ltd. where bulk of the dividend was received. Subsequently before due date of filing the return dividend was declared by the assessee where the entire dividend declared of 60 lakhs was claimed as a deduction under section 80M that dividend received forming part of the income was passed away as dividends. The assessing officer raised objection on this basing section 115O which came in to effect from 1-4-2003 more so sub-section (5) which says no deduction shall be claimed by the company of such dividends paid under section 115O. The reasoning was that there was an overlap of the financial year thus TDS was done on the dividends paid by Nirma Ltd. by the Patel family and then the same was claimed as 80M in the hands of the company and thus there was a double benefit availed thus denied 80M benefit. Commissioner (Appeals) negated the view of the assessing officer on further appeal: Held in favour of the assessee that they were entitled to the deduction under section 80M.

The Tax Publishers

DCIT v. Kargil Holding (P.) Ltd. [ITA No. 6527/Mum/2007, dt. 29-4-2016] : 2016 TaxPub(DT) 2932 (Mum-Trib)

Section 80M pass through dividend v section 115O(5)

Facts:

Assessee was part of the Nirma group of companies owned by Mr. Karsanbhai Patel. The said assessee was in receipt of dividend on 13-9-2002 and 10-10-2002 from two companies one of which was Nirma Ltd. where bulk of the dividend was received. Subsequently before due date of filing the return dividend was declared by the assessee where the entire dividend declared of 60 lakhs was claimed as a deduction under section 80M that dividend received forming part of the income was passed away as dividends. The assessing officer raised objection on this basing section 115O which came in to effect from 1-4-2003 more so sub-section (5) which says no deduction shall be claimed by the company of such dividends paid under section 115O. The reasoning was that there was an overlap of the financial year thus TDS was done on the dividends paid by Nirma Ltd. by the Patel family and then the same was claimed as 80M in the hands of the company and thus there was a double benefit availed thus denied 80M benefit. Commissioner (Appeals) negated the view of the assessing officer on further appeal:

Held in favour of the assessee that they were entitled to the deduction under section 80M.