Commissioner Of Surtax vs Dalmia Dairy Industries Ltd.
2001 Latest Caselaw 1246 Del

JUDGMENT

Arijit Pasayat, C.J.

Heard.

Following questions have been referred for opinion of this court at the instance of the revenue under section 256(1) of the Income Tax Act, 1961 (hereinafter referred to as the Act), by the Tribunal, Delhi Bench 'B':

"Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the computation of capital employed under the Companies (Profits) Surtax Act, 1964 was not liable to be reduced under rule 4 of the Second Schedule in relation to the deduction allowed/ allowable under Chapter VI-A of the Income Tax Act ?

2. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the income-tax payable on the dividend income which is to be excluded from the income-tax payable by the assessed-company on its total income, has to be determined with reference to the net dividend income only which is included in the total income and not on the gross dividend income ?"

The dispute relates to the assessment year 1975-76.

2. Considering the answer given in respect of similar questions in IT Reference No. 329 of 1979, disposed of on 6-9-2000 and IT Reference No. 99 of 1980, disposed of on 2-11-2000, we answer the first question in the affirmative, in favor of the assessed and against the revenue. So far as the second question is concerned, the same is answered in favor of the revenue and against the assessed.

2. Considering the answer given in respect of similar questions in IT Reference No. 329 of 1979, disposed of on 6-9-2000 and IT Reference No. 99 of 1980, disposed of on 2-11-2000, we answer the first question in the affirmative, in favor of the assessed and against the revenue. So far as the second question is concerned, the same is answered in favor of the revenue and against the assessed.

The application is disposed of.