COMMISSIONER OF INCOME TAX Vs. FEDERAL BANK LTD.

JUDGEMENT

(1.) THESE two connected appeals filed by the Revenue arise from the order of the Tribunal for the asst. yrs. 1991 -92 and 1992 -93. All the questions raised except the one pertaining to allowance under s. 80M of the IT Act, 1961, stand decided by this Court in the assessee's own case reported in CIT vs. Nedungadi Bank Ltd. (2003) 182 CTR (Ker) 403 : (2003) 264 ITR 545 (Ker) and later decisions in IT Appeal Nos. 73 and 191 of 2001. We therefore answer all questions except the one pertaining to part disallowance under s. 80M in favour of the assessee and against the Revenue and consequently the Revenue's appeals are dismissed on these issues.

(2.) THE only remaining question pertains to computation of relief under s. 80M which provides for 60 per cent of the deduction of dividend received from other companies. The AO made recomputation making partial disallowance of the claim on the ground that the assessee would have incurred some expenditure for earning the dividend income. The Tribunal found that there is no basis for estimating expenditure and reducing the same from the dividend income in respect of which s. 80M relief is claimed by the assessee. Having regard to the small amount of dividend and disallowance involved, we do not find any ground to interfere with the order of the Tribunal. We accordingly dismiss both the appeals.