80AA. Where any deduction is required to be allowed under section 80M in respect of any income by way of dividends from a domestic company which is included in the gross total income of the assessee, then, notwithstanding anything contained in that section, the deduction under that section shall be computed with reference to the income by way of such dividends as computed in accordance with the provisions of this Act (before making any deduction under this Chapter) and not with reference to the gross amount of such dividends.]
1. Inserted by the Finance (No. 2) Act, 1980, with retrospective effect from 1-4-1968, subject to the savings prescribed in section 44 of the said Act, which read as under :
"44. Saving in certain cases.—Where before the 18lh day of June, 1980 (being the date on which the Finance (No. 2) Bill, 1980 was introduced), the Supreme Court has, on an appeal or a reference in respect of the assessment of an assessee for any particular assessment year, held that the deduction under section 80M is to be allowed in a manner different from that provided in section 80AA of the Income-tax Act, as inserted by section 12 of this Act, then, nothing contained in the said section 80AA shall apply to the assessment of such assessee for that particular assessment year."
[As amended by the Finance Act, 1983]