TaxTMI 
TaxTMI 
2025 (12) TMI 1041
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....he assessment order dated 30.12.2019 passed u/s. 143(3) of the Act for Assessment Year 2017-18. 2. Brief facts of the case are that assessee is a Trust having registration u/s. 12A of the Act and filed its return of income declaring total income at Nil. The case of the assessee trust was selected for scrutiny wherein the AO has made the additions of Rs. 25,51,286/- towards the dividend income as unexplained and further disallowed expenditures claimed u/s. 57(1) of the act at Rs. 30,05,665/- and the total income of the assessee trust was assessed at Rs. 55,56,950/-. 3. Against the said order, the assessee preferred an appeal before the Ld. CIT(A), who partly allowed the appeal of the assessee wherein disallowance of expenditure claimed....
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....hat the above referred amended provisions of Section 115BBDA of the Act are effective from 1st April, 2018 (AY 2018-19) and hence do not apply to the Assessment Year 2017-18. The appellant prays that the learned Assessing Officer be directed to grant exemption under Section 10(34) of the Act for a sum of Rs. 25,51,286/- in respect of Dividend Income as the denial thereof is unwarranted, unjustified and unreasonable. I, Shyamsunder Maniyar, the Principal Officer of the Appellant, do hereby declare what is said above is true to the best of my information and belief." 5. Ground of appeal Nos. 1 to 1.3 are with respect to the confirmation of the addition of Rs. 25,51,286/- subject to allowance of basis exemption of Rs. 10,0....
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....ot be applied in Assessment Year 2017-18. The first proviso to section 10(34) of the Act, reads as under: "Provided that nothing in this case clause shall apply to any income by way of dividend chargeable be tax in accordance with the provisions of section 115BBDA of the Act." 9. That the provision is inserted from 01.04.2017, and is applicable from Assessment Year 2017-18. The relevant extract of clause 7(iv) through which this amendment was proposed in the Finance Bill, 2016 is reproduced as under: 7. In section 10 of the Income-tax Act,- (1)....... ........ (IV) in clause (34), the following proviso shall be inserted, namely:- "Provided that nothing in this clause shall apply to any income ....
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...., 2016 for clause 7(iv) and clause 50 reads as under: Clause 7 of the Bill seeks to amend section 10 of the Income Tax Act relating to incomes not included in total income It is also proposed to amend clause (34) of the said section so as to provide that any income by way of dividend in excess of ten lakh rupees shall not be exempt from tax in the case of an individual, Hindu undivided family or a firm. ............ These amendments will take effect from 1st April, 2017 and will, accordingly, apply in relation to the assessment year 20172018 and subsequent years. Clause 50 of the Bill seeks to insert a new section 115BBDA in the Income-tax Act relating to tax on certain dividends received from do....
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....ayers as those who have high dividend income are subjected to tax only at the rate of 15% whereas such income in their hands would have been chargeable to tax at the rate of 30%. With a view to rationalise the tax treatment provided to income by way of dividend, it is proposed to amend the Income-tax Act so as to provide that any income by way of dividend in excess of Rs. 10 lakh shall be chargeable to tax in the case of an individual, Hindu undivided family (HUF) or a firm who is resident in India, at the rate of ten percent. The taxation of dividend income in excess of ten lakh rupees shall be on gross basis. These amendments are proposed to be made effective from the 1stday of April, 2017 and shall accordingly apply in ....