JUDGMENT
B.P. Jeevan Reddy, C.J.
1. Under Section 256(1) of the Income-tax
Act, 1961, the Income-tax Appellate Tribunal has referred the following
question for the opinion of the court:
“Whether, on the facts and in the circumstances of the case, the
Tribunal was right in holding that the entire gross dividend of Rs. 16,781
and not the net dividend after giving deductions under Sections 80L and 80M of the Income-tax Act, 1961, was deductible from the total income of,
the assessee in computing the chargeable profits in accordance with, Clause
(viii) of Rule 1 of the First Schedule to the Companies (Profits) Surtax Act,
1964 ?”
2. It is stated by counsel for the Revenue as well as counsel for the assessee that this question has to be answered in the negative, i.e., in favour of the Department and against the assessee in view of the judgment of the Supreme Court in Distributors (Baroda) P. Ltd. v. Union of India [1985] 155 ITR J20. The question is, accordingly, answered in the negative, i.e., in favour of the Revenue and against the assessee.
3. No costs.