The Commissioner Of Income Tax v. Vimal Fabrics Ltd

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTIONINCOME TAX APPEAL NO.979 OF 2000 The Commissioner of Income Tax Vs.Vimal Fabrics Ltd. ..Appellant ..Respondent Mr.P.S.Sahadevaa for the Appellant.Mr.J.D.Mistry with Raj Darak for the Respondent. P.C. CORAM :- DR.S.RADHAKRISHNAN &J.P.DEVADHAR,JJ.DATE : 27TH FEBRUARY,2007 1.Heard the learned Counsel for the parties. The above Appeal is admitted on the following substantial questions of law: 1."Whether on the facts and in thecircumstances of the case, the Tribunal wasright in law in holding that the assessee wasentitled for deduction under Section 80-M at60% of the gross dividend of Rs.15,68,795/- oran amount of Rs.52,505/- ought to be reducedas the assessee had invested interest bearingfunds in the purchase of shares and deductionunder Section 80-M is allowable on netdividend only ?"2."Whether on the facts and in thecircumstances of the case, the Tribunal wasright in law in holding that the commissionpaid on sales could not be included incomputing the disallowance under Section37(3A) as the same was not sales promotionexpenses?" Circular dated 27th March,2000, we dismiss the above Appeal. (J.P.DEVADHAR,J.) (DR.S.RADHAKRISHNAN,J.)