DISTRIBUTORS (BARODA) PVT. LTD. versus UNION OF INDIA AND TWO ORS.

DISTRIBUTORS (BARODA) PVT. LTD. versus UNION OF INDIA AND TWO ORS.

The deduction envisaged by Section 80M must be made with reference to the dividend income computed in accordance with the provisions of the Income Tax Act and not with reference to the full amount of dividend received. Section 80AA is merely declaratory of the law as it always was since 1st April 1968, and no valid...

Source-derived case information.

Parties
Petitioner: Distributors (Baroda) Pvt. Ltd.; Respondent: Union of India; Respondent: Two Ors.
Jurisdiction
India
Judgment Date
01 July 1985
Procedural Posture
Writ Petition / Final Judgment
Outcome
Petition dismissed
Legal Topics
Deduction of Intercorporate Dividends, Retrospective Application of Declaratory Statutes, Interpretation of Fiscal Statutes
Income Tax Constitutional Law Deduction of Intercorporate Dividends Retrospective Application of Declaratory Statutes Interpretation of Fiscal Statutes

Source-derived case record

Summary, issues, holding and outcome

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Parties

Distributors (Baroda) Pvt. Ltd.

Petitioner

Union of India

Respondent

Two Ors.

Respondent

Procedural Posture

Writ Petition / Final Judgment

Legal Issues

  1. 1 Whether deduction under Section 80M should be made with reference to the full amount of dividend received or the dividend computed in accordance with the provisions of the Act
  2. 2 Whether Section 80AA operates retrospectively and imposes an unreasonable restriction in breach of Article 19(1)(g)

Ratio Decidendi

The deduction envisaged by Section 80M must be made with reference to the dividend income computed in accordance with the provisions of the Income Tax Act and not with reference to the full amount of dividend received. Section 80AA is merely declaratory of the law as it always was since 1st April 1968, and no valid complaint can be made against its retrospective operation.

Court Disposition

Petition dismissed

Orders

  • Each party to bear its own costs