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2023 (10) TMI 271 - ITAT DELHIExcess dividend received by assessee - Company JEPL paid dividend distribution taxes (DDT) u/s 115-O of the Act, the A.O. treated the additional dividend received by the assessee as taxable on the ground that there is a change in the terms and conditions with respect to the issue of dividend - CIT(A) deleted addition - HELD THAT:- It is worth to observe that the original terms and conditions are permitted to amend with the consent of at least 75% of the shares holders of these shares, which has been complied in the present case. As per the provision of Section 10(34) of the Act, the dividends which are referred in Section 115-O of the Act, are exempt and as per Section 115-O, domestic companies are liable to pay Dividend Distribution Tax on the amounts declared as dividends, accordingly, any dividend declared/paid by a domestic Company on which DDT has been paid, is exempt u/s 10(34) of the Act. In the present case, the Company paying dividends to the assessee has duly paid DDT and, therefore, the assessee is entitle to treat the dividend as exempt u/s 10(34) - Thus, in our considered opinion, we find no error or infirmity in the order of the CIT(A) in deleting the addition - we dismiss the Appeal filed by the Revenue.
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