Section 80M of the Income Tax Act
Income-tax Act, 2025: s.148
Section 80M of the Income-tax Act, 1961 corresponds to section 148 (Deduction in respect of certain inter-corporate dividends) of the Income-tax Act, 2025.
Read section 148 of the 2025 Act
Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.
The decision most relied on for Section 80M is Mazagaon Dock Ltd. v. CIT & Excess Profits Tax (34 ITR 368), cited in 57 of the 84 judgments on BharatTax that turn on this section.
Leading authorities on Section 80M
Investments made by a holding company in its subsidiary can be considered a business activity, allowing related business expenditures to be deducted and not disallowed.
Expenditure incurred by a holding company for making investments in a subsidiary can be treated as business expenditure and is not disallowable, as such investment activity can itself constitute a business.
Expenditure incurred by a holding company in making investments in its subsidiaries can be treated as a business activity and thus, the expenditure is allowable as a business deduction.
A taxpayer can raise additional claims before appellate authorities, even if not raised during assessment or in a revised return. The Assessing Officer must examine eligibility criteria for claims based on facts available in audited accounts.
Interest under section 234C for delayed or deferred advance tax payment is payable only from the date the liability to pay advance tax is incurred. This applies to transactions like capital gains where liability arises after the event.
