RAJENDRA NIVRUTTI THITE,PUNE vs. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(3), PUNE

This appeal by the assessee arises out of the order dated 28-02-2023 passed by the CIT(A) in National Faceless Appeal Centre, Delhi u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the assessment year 2018-19.

The only issue raised in this appeal is against the confirmation of addition of Rs.1,95,000/- towards Dividend received from Grainotch Industries Ltd., which was claimed as exempt.

Briefly stated, the facts of the case are that the assessee claimed exempt income, inter alia, of Rs.1.95 lakh. In the absence of the assessee furnishing any evidence in support of the income, the Assessing Officer (AO) treated such amount as “Income from Other Sources” and made the addition. During the course of first Appellate proceedings, the assessee submitted that Rs.1.95 lakh was received as dividend from Grainotch Industries Ltd. In the absence of the assessee furnishing the Board Resolution regarding declaration of dividend or any other evidence, the ld. CIT(A) sustained the addition.

I have heard the rival submissions and gone through the relevant material on record. The assessee has made out a case that a sum of Rs.1.95 lakh was received as dividend from Grainotch Industries Ltd. Though the evidence in respect of receipt of dividend, such as, the Board Resolution etc., was not placed before the authorities below, the ld. AR contended that such evidence was now available and the same can be verified. Considering the facts in the entirety, I am of the considered opinion that it would be just and fair if the impugned order is set aside on this score and the matter is remitted to the file of AO. I order accordingly and direct him to verify the genuineness of receipt of dividend of Rs.1.95 lakh as corroborated with the necessary evidence and then decide the issue as

In the result, the appeal is allowed for statistical purposes. Order pronounced in the Open Court on 09th June, 2023.