Commissioner of Income Tax vs Federal Bank Ltd.

C. N. Ramachandran Nair, J.—These two connected appeals filed by the revenue arise from the order of the Income Tax Appellate Tribunal for the assessment years 1991-92 and 1992-93. All the questions raised except the one pertaining to allowance u/s 80M of the Income Tax Act, 1961, stand decided by this Court in the Assessees own case reported in Commissioner of Income Tax Vs. The Nedungadi Bank Ltd., and later decisions in I. T. A. Nos. 73 and 191 of 2001. We therefore answer all questions except the one pertaining to part disallowance u/s 80M in favour of the Assessee and against the revenue and consequently the revenues appeals are dismissed on these issues.

The only remaining question pertains to computation of relief under 2 Section 80M which provides for 60 per cent, of the deduction of dividend received from other companies. The assessing officer made recomputation making partial disallowance of the claim on the ground that the Assessee would have incurred some expenditure for earning the dividend income. The Tribunal found that there is no basis for estimating expenditure and reducing the same from the dividend income in respect of which Section 80M relief is claimed by the Assessee. Having regard to the small amount of dividend and disallowance involved, we do not find any ground to interfere with the order of the Tribunal. We accordingly dismiss both the appeals.