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2023 (12) TMI 341 - ITAT AHMEDABADRectification u/s 154 - applicability of section 115BBDA - Assessee earned dividend income from mutual funds which were exempt from taxation u/s 10(35) - as argued assessee having not earned dividend exempt u/s 10(34) of the Act, therefore the invocation of section 115BBDA to the dividend income earned by the assessee was a mistake needing rectification - HELD THAT:- Section 115BBDA of the Act levies special rate of tax only on dividend income earned from domestic companies if exceeding Rs. 10 lakhs. This dividend income is exempt upto Rs. 10 lakhs under section 10(34) - The assessee has claimed to have earned dividend income from mutual fund which are exempt u/s 10(35) of the Act. Evidence to this effect was also filed by way of statement of Mutual Fund. The assessee had clearly demonstrated the inapplicability of section 115BBDA of the Act to the facts of her case. In the light of the same the Ld.CIT(A)’s order upholding the rejection of her application seeking rectification to this effect is clearly untenable more particularly since we find that the Ld.CIT(A) has not even cared to deal with the contention of the assessee before upholding the order of CPC . Thus we hold, the rectification application filed by the assessee needs to be allowed. In view of the above the order of the CPC/AO, rejecting the assessee’s rectification application seeking deletion of addition made to her income of dividend income earned from mutual fund and subjected to tax at 10%, is set aside. The CPC/ AO is directed to allow the rectification application of the assessee and delete the adjustment made to her income, taxed at the rate of 10%. Appeal of the assessee are allowed.
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