The Judgment of the Court was delivered by BHAGWATI, J. This group of appeals and References raises a short question of companystruction of sections 85A and 80M of the Income Tax Act, 1961 hereinafter referred to as the present Act .
The question is whether on a true interpretation of these sections, rebate of income tax is admissible on the actual amount of divident received by an assessee, being a companypany, from an Indian companypany, or it is companyfined only to the dividend income as companyputed in accordance with the provisions of the Act, that is, after making the deductions specified in section 57 including deduction of the interest paid on borrowings for making the investments.
The Gujarat High Court has taken a view against the assessee while a different view has been taken by the Bombay, Madras and Calcutta High Courts.
946 949/AHD/72 73 for Assessing years 1966 67 to 1969 70 .
The appeals are preferred by the assessee, namely, Cloth Traders P Ltd. against the judgment of the Gujarat High Court and they relate to the assessment years 1965 66 and 1966 67 when section 85A was in force.
The Reference before us have been made directly by the Tribunal under section 257 of the Act in view of the companyflict of opinion amongst the High Courts.
For the Interveners 1 M s. Jardine Henderson Ltd. Dr. Debi Pal and D. N. Gupta, 2 Indore Exporting Importing Co. Ltd. Dr. Debi Pal, Miss Bina Gupta and Mr. Praveen Kumar, and 3 M s. Ajay Investment Co. Praveen Kumar and Miss Bina Gupta.
Out of these References, three are at the instance of the assessees, namely, C. V. Mehta P Ltd., M s. Distributors Baroda Pvt.
Ltd. and one is at the instance of the Commissioner of Income tax, Gujarat.
Ltd., and H. K. Investment Co. Pvt.
643 AHD /71 72 .
Gen., B. B. Ahuja and Miss A. Subhashini.
They relate to different assessment years assessment year 1969 70 in case of C. V. Mehta P Ltd. and Distributors Baroda Pvt.
From the Judgment and Order dated 28 11 1973 of the Gujarat High Court in I.T.R. No.
TAX REFERENCE NO.
Ltd. and assessment years 1965 66 to 1969 70 in case of H. K. Investment Co. Pvt.
Genl, S. P. Nayar and Miss A. Subhashini.
271/AHD/74 75 arising out of I.T.A. No.
TAX REFERENCE NO.
For the Respondent S. N. Kacker, Sol.
TAX REFERENCE NOS.
117 118 of 1975.
62/AHD/74 75 arising out of I.T.A. No.
CIVIL APPELLATE JURISDICTION Civil Appeal Nos.
2431/AHD/72 73 decided on 29 7 74 assessment year 1969 70 .
TAX REFERENCE NO.
2 OF 1975 From the Tax Reference made by the Income Tax Tribunal Ahmedabad against its order dated 7 7 1973 in I.T.A. No.
103 106/AHD/74 75 arising out of T.A. Nos.
18 OF 1975 From the Tax Reference made by the Income Tax Appellate Tribunal, Ahmedabad Bench in R.A. No.
For the Respondent S. N. Kacker, Sol.
For the Respondent F. S. Nariman, I. N. Shroff, and S. Parihar.
For the Respondent Miss A. Subhashini.
6 9 OF 1975 For the Appellant F. S. Nariman, I. N. Shroff, and H. Parihar.
6 9 OF 1975 From the Tax Reference made by the Income Tax Tribunal Ahmedabad in R. A. Nos.
For the Interveners Central India Industries Dr. Debi Pal, Miss Bina Gupta and Mr. Praveen Kumar.
16 OF 1975 For the Appellant Mrs. A. K. Verma and J. B. Dadachanji, K. J. John and Shri Narain.
For the Intervener Central India Industries Ltd Dr. Debi Pal, Miss Bina Gupta and Mr. Praveen Kumar.
18 OF 1975 For the Appellant S. P. Mehta, K. C. Patel, Shri Narain, J. B. Dadachanji, Mrs. A. K. Verma and Miss Arti Mehta.
For the Intervener Central India Industries Dr. Debi Pal, Miss Bina Gupta and Mr. Praveen Kumar.
For the Respondent S. N. Kacker, Solicitor General, P. Nayar and Miss A. Subhashini.
and Miss Subhashini.
117 118/75 For the Appellant Mr. B. Sen, I. N. Shroff and H. S. Parihar.
TAX REFERENCE NO.
TAX REFERENCE No.
CIVIL APPEAL NOS.
2 OF 1975 For the Appellant S. N. Kacker, Sol.
580/AHD/72 73 .
21 of 1972 .
For the Interveners 1 Ramakrishna Sons Ltd. S. P. Mehta, T. A. Ramachandran and M s. J. Ramachandran, 2 M s. Jardine Henderson Ltd. Dr. Debi Pal and D. N. Gupta, 3 Indore Exporting Importing Co. Ltd. Dr. Debi Pal, Miss Bina Gupta and Mr. Praveen Kumar, and 4 Ketu Investments Ltd. S. T. Desai, Mrs. A. K. Verma and J. B. Dadachanji, K. J. John and Shri Narain.
16 OF 1975 From the Tax Reference made by the Income Tax Tribunal, Ahmedabad in Reference Application No.
TAX REFERENCE NO.
TAX REFERENCE NOS.
