R.N.PYNE, J. - (1.) IN this reference under s. 256(1) of the IT Act, 1961, which relates to the asst. yr. 1973-74, the following question of law has been referred to this Court for its opinion: "Whether, on the facts and in the circumstances of the case, and on a correct interpretation of s.80B(5) of the IT Act, 1961, defining the term `gross total income', the assessee is entitled to relief under s. 80M of the IT Act, 1961, in respect of the gross amount of dividends from domestic companies and not in respect of the net amount of such dividends computed in accordance with the provisions of s. 57 of the said Act ?"
(2.) IN view of the provisions of s. 80AA of the IT Act, 1961, inserted by the Finance (No. 2) Act, 1980, with restrospective effect from April 1, 1968, we answer the question by saying that the assessee will not be entitled to relief under s. 80M in respect of the gross amount of dividends but it will be entitled to relief under the said section only in respect of the net amount of such dividends computed in accordance with the provisions of s. 57 of the IT Act. The question is answered in the negative and in favour of the Revenue. There will be no order as to costs.;