ANIL GUPTA,DELHI vs. DCIT, CIRCLE 13(1), DELHI

The dispute in the present appeal is confined to addition of an amount of Rs. 67,91,763/-, being the dividend earned by the assessee.

We have considered rival submissions and perused materials on record. It is the case of the assessee before us that during the year under consideration the assessee earned dividend income of Rs. 77,91,763/-. After claiming deduction of Rs. 10,00,000/- in terms of Section 115BBDA of the Act, the assessee offered the balance dividend income of Rs. 67,91,763/- to tax as income from other sources along with an amount of Rs. 3,66,928/- on account of interest and other income. It is the case of the assessee that while processing the return of income the Centralized Processing Centre ignoring the fact that the dividend income of Rs. 67,91,763/- has already been offered to tax has again added the very same amount, resulting in double addition of the same income. It is observed, before the First Appellate Authority as well, the assessee has canvassed identical arguments. However, without properly verifying assessee’s claim the First Appellate Authority has sustained the addition. Before us, learned counsel for the assessee drew our attention to the copy of return of income filed and computation of income to emphasize that the dividend income of Rs. 67,91,763/- has already been offered to tax. Assessee’s claim, prima facie, appears to be correct. However, for the limited purpose of factually verifying assessee’s claim, we restore the issue to the Assessing Officer to verify relevant documents and in case it is found that the dividend income of Rs. 67,91,763/- has already been offered to tax by the assessee, the addition should be deleted. Grounds are allowed for statistical purposes.

Resultantly, appeal is allowed for statistical purposes. Order pronounced in open court on 04.04.2024.