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2022 (11) TMI 115 - AT - Income TaxTreating the dividend income as ‘not exempt’ u/s.10(34) - whether the ld. CIT(A) was justified in not allowing the loss claimed by the assessee in the year under consideration? - HELD THAT:- From the perusal of of Section 10(34) we find that the second proviso is incorporated only from 01/04/2021 i.e. commencing from A.Y.2021-22 onwards which categorically states that dividends received on or after 01/04/2020 alone would be subjected to tax. In the instant case, admittedly dividend has been received by the assessee during the F.Y.2019-20 relevant to A.Y.2020-21. Hence, there is no case for taxing the said dividend income during the year under consideration. Accordingly, we direct the AO to treat the dividend income as exempt u/s.10(34) of the Act. The assessee’s claim of loss for the year would be eligible to carry forward to subsequent years. Accordingly, the grounds raised by the assessee are allowed.
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