Cloth Traders (P.) Ltd. v. Addl CIT

118 ITR 243Supreme Court of India1979#5173 most cited

What is Cloth Traders (P.) Ltd. v. Addl CIT authority for?

The deduction under Section 80HH is calculated on gross profits and gains, before applying specific income computation sections. This was established by distinguishing it from the treatment of dividends under Section 80M.

22

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2007 to 2024.

Also referred to as

Cloth Traders P Ltd v Addl CIT · 118 ITR 243 SC · Section 80HH · Section 80M · deduction on gross profits · dividend income · intercorporate dividends

Judgments citing Cloth Traders (P.) Ltd. v. Addl CIT

Commissioner of Income Tax

ITA/444/2011HC Delhi18 Jul 2012
Section 14ASection 2(45)Section 5Section 80ASection 80A(1)Section 80B(5)Section 80P(2)(d)

…from a domestic company. This was the same argument which found favour with the court in Cloth Traders' case [1979] 118 ITR 243, but on fuller consideration, we do not think it is well founded. We may assume with the court in Cloth Traders' case [1979] 118 ITR 243, that the words " where the gross total income of an assessee ... includes any income by way of dividends from a domestic company " are intended only to provide that a particular category of income, namely, income by way of dividends from a domestic company should form a component part of gross total income, irrespective of what is the q…

Commissioner of Income Tax-V N vs. Damanjit Singh

ITA/166/2000HC Delhi12 Jan 2007

…ance on the judgment in Distributors (Baroda) P. Ltd. v. Union of India (1985) 155 ITR 120 (SC). In this decision, the Constitution Bench of the Hon'ble Supreme Court was reconsidering its earlier decision in Cloth Traders P. Ltd. v. Additional CIT (1979) 118 ITR 243 (SC) where, in the context of Section 80M(1) of the Act a question arose whether the relief in respect of dividends received from a domestic company was available only in respect of the net dividend as computed for purpose of assessment and not the gross dividend. In order to appreciate the observations of the Court in this case, it may be us…