NAV BHARAT VANIJYA LTD Vs. COMMISSIONER OF INCOME TAX
LAWS(CAL)-1996-8-16
HIGH COURT OF CALCUTTA
Decided on August 27,1996

COMMISSIONER OF INCOME-TAX,NAV BHARAT VANIJYA LTD. Appellant
VERSUS
COMMISSIONER OF INCOME-TAX,JUGGILAL KAMLAPAT UDYOG LTD. Respondents

JUDGEMENT

Visheshwar Nath Khare, CJ. - (1.)These two references under Section 256(1) of the Income-tax Act, 1961, one at the instance of Nav Bharat Vanijya Limited, the assessee, being Income-tax Reference No. 187 of 1992, and the other at the instance of the Commissioner of Income-tax, Central-1, Calcutta, being Income-tax Reference No. 44 of 1993, raise a common question of law and as such we propose to decide both the references together.
(2.)In Reference No. 187 of 1992, the assessment year involved is the assessment year 1980-81. For the said assessment year, the assessee claims Rs. 3,87,464 as deduction under Section 80K of the Income-tax Act being 100 per cent. of the dividend received from Straw Products Ltd. The claim has been made by the assessee on the basis of the provisional certificate granted by the Assessing Officer under Section 197(3) dated July 14, 1978, for the year ending December 31, 1977. Since the assessment in the case of Straw Products Ltd. was completed, the Assessing Officer ignored the provisional certificate granted by the Assessing Officer and proceeded to assess the assessee in the light of the assessment order and worked out the allowable deduction under Section 80K read with Rule 20 on the basis of the completed assessment.
(3.)On appeal by the assessee, the Commissioner of Income-tax upheld the order of the Assessing Officer.
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