- (1.) Present appeal has been filed by the department under Section 260 A of the Income Tax Act, against the judgment and order dated 15.04.2004 passed by the Income Tax Appellate Tribunal, Lucknow in I.T.A.No.1291/Alld/1995, for the assessment year 1990-91.
(2.) On 28.09.2004, a coordinate Bench had admitted the appeal on the following substantial questions of law:- (a) Whether the Income Tax Appellate Tribunal has erred in law in directing the assessing officer to allow the deduction under sec. 80M on the dividend income of Rs.62,10,000/- on units of UTI which was not originally claimed in the return of income but was claimed subsequently through application under sec.154 for the first time after the completion of the assessment. (b) Whether the Income Tax Appellate Tribunal has erred in law in directing to allow deduction under sec.80M without considering the provisions of Section 80A(2) of the I.T.Act, 1961 which provide that the maximum limit of deduction under the Chapter VI-A shall not, in any case, exceed the gross total income.
(3.) The brief facts of the case are that the assessee company has claimed the deduction under Section 80M for Rs.8,39,174/- by filing its income tax return. On 26.03.1993, the assessment was completed under Section 143(3) of the Act, and a claim under Section 80M was disallowed.;