AHMEDABAD MANUFACTURING& CALICO PRINTING CO. LTD & ANR. vs A.V.JOSHI

The Supreme Court interpreted Section 80K of the Income Tax Act, 1961, clarifying that the exemption for dividends under Section 80K is contingent upon the relief granted under Section 80J. The Court held that the Income Tax Officer correctly calculated the exempted portion of the dividend based on the allowable relief of 6% of the capital employed in the new industrial undertakings. The appeal was dismissed, affirming the decision of the Income Tax Officer regarding the calculation of the exempted dividend amount.