COMMISSIONER OF INCOME TAX Vs. RELIANCE INDUSTRIES LTD.

JUDGEMENT

(1.) THE Revenue is in appeal on the following substantial questions of law :

(2.) SO far as question (A) is concerned, the CIT(A) held that certain administrative expenses are required to be incurred to keep track of receipt and accruals of dividend income and accordingly, it is not possible to accept that no expenditure has been incurred out of the dividend income. Accordingly, he held that the expenses of Rs. 20 lakhs is sufficient to meet the expenses. The Tribunal in appeal observed that : "The assessee has earned dividend income only from three companies. There is no fact of having incurred any expenditure for the purpose of earning the dividend income. The disallowance, in our view, is misconceived and the same is deleted in the light of the same order". In our opinion, this is purely a finding of fact and, therefore, question (A) as framed would not arise.

(3.) SO far as question (C) is concerned, the same is answered by the judgment of the Supreme Court in the case of Berger Paints India Ltd. vs. CIT (2004) 187 CTR (SC) 193 : (2004) 266 ITR 99 (SC). Question (C), therefore, would not arise.