2026 (1) TMI 136

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....s the "Act"), dated 13.03.2019 for AY 2017-18. 2. Grounds taken by assessee are reproduced as under: 1. In law and in the facts and circumstances of the Appellant case, the learned Commissioner of Income-tax (Appeals) has grossly erred in confirming the addition of Rs. 34,34,698/- made by Ld. AO treating as dividend u/s. 10 (34) of IT Act. However appellant earned income from mutual fund which is exempt u/s. 10(35) of IT Act. 2. In law and in the facts and circumstances of the Appellant case, the learned Commissioner of Income-tax (Appeals) has grossly erred in confirming the addition of Rs. 3,79,894/- made by Ld. AO for not allowing of loss of capital gain. 2.1. First issue raised in the present appeal is in respect....

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....vidend earned on shares. To prove her claim, assessee furnished documentary evidences about this dividend being earned from mutual funds only. These were furnished before the ld. CIT(A) by filing an application under Rule 46A of the Income-tax Rules, 1962 (the Rules). Details relating to dividend information sent by various mutual funds organizations/managers was also placed on record. 4. According to her, addition has been sustained merely on the premise that assessee has earned dividend income from domestic companies and therefore, provisions of Section 115BBDA applies. Ld. CIT(A) also confirmed the addition made while processing the return despite all the documentary evidences placed on record by the assessee. 4.1. In this respect,....

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....he return form in Schedule EI. Assessee had constrain to furnish this detail in the Schedule only as there was no other place to bifurcate the earning of the dividend income from shares and from mutual funds. Such a constrain laid to invoking of provisions Section 115BBDA at the time of processing of return by CPC, whereby income to the extent of Rs. 10 lacs was allowed as exempted and the balance was subjected to tax, for which the assessee is in appeal before the Tribunal. 6. Assessee has furnished all the documentary evidences to substantiate her claim and demonstrate evidently that the dividend earned is from mutual funds which is exempt u/s. provision of Section 10(35), not forming part of the total income. Having considered the pro....