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TMI Blog2022 (7) TMI 627X X X X Extracts X X X X X X X X Extracts X X X X ..... . Admittedly in the instant case, the dividend from M/s. Marico Ltd., was received by the assessee only in third and fourth quarters of the financial year. Admittedly, the assessee had duly paid the advance tax on the said dividend income taxable u/s.115BBDA of the Act in the third and fourth quarters of the financial year. Hence, as per the old proviso to Section 234C (1) of the Act, there cannot be any levy of interest u/s.234C of the Act that could be fastened on the assessee for the first two quarters by apportioning dividend income for the whole year. Hence, we find lot of force in the arguments advanced by the ld. AR and accordingly, allow the grounds raised by the assessee. - ITA No. 403/Mum/2022 - - - Dated:- 12-7-2022 - SHRI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CPC Bangalore had considered the dividend income like any other income which is required to be apportioned for the full year for the purpose of levy of interest u/s.234C of the Act in case of default of payment of advance tax. The assessee pleaded that the dividend income from M/s. Marico Ltd., was earned by the assessee only on 29/11/2017 and 09/03/2018 falling in third and fourth quarters of the financial year respectively and hence, the advance tax on the said dividend income would become payable by the assessee only in third and fourth quarter which has been duly complied with by the assessee. Hence, there cannot be any levy of interest u/s.234C of the Act in respect of first two quarters of the financial year by apportioning this divid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of Section 234C of the Act as amended by the Finance Bill 2021 and held that the said amendment is prospective in nature and could be applied only from A.Y.2021-22 onwards. The NFAC also observed that even though the dividend was declared in the last two quarters of the financial year, by virtue of the deeming fiction u/s.8 of the Act and in the absence of any exception for dividend income provided u/s.234C of the Act, interest u/s.234C of the Act would become chargeable in respect of tax payable u/s.115BBDA of the Act for dividend. With these observations, the appeal of the assessee was dismissed by NFAC. Aggrieved the assessee is in appeal before us. 5. At the outset, we find that the ld. CIT(A) had applied the provisions of Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1/04/2017 to 31/03/2021. Hence, for the year under consideration i.e. A.Y.2018-19, the old proviso as it stood during 2017-21 would apply. If the said provision is applied, the dividend income contemplated u/s.115BBDA of the Act falls under the Exception clause in Clause (d). Admittedly in the instant case, the dividend from M/s. Marico Ltd., was received by the assessee only in third and fourth quarters of the financial year. Admittedly, the assessee had duly paid the advance tax on the said dividend income taxable u/s.115BBDA of the Act in the third and fourth quarters of the financial year. Hence, as per the old proviso to Section 234C (1) of the Act, there cannot be any levy of interest u/s.234C of the Act that could be fastened on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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