9911796707
TMI Blog2020 (11) TMI 522X X X X Extracts X X X X X X X X Extracts X X X X ..... case and in law, the Ld C1T(A) has erred in upholding the assessment order passed by Ld AO under section 143(3) for the subject year wherein the income was assessed at Rs. 71,21,390 as against NIL returned income declared by the appellant and is liable to be quashed. 2. That on facts and circumstances of the case and in law, the Ld CIT(A) has erred in holding that the benefit of section 161 of the Act is not available to the appellant being a beneficiary in SARA Fund, a Venture Capital Fund (VCF) . 3. That on facts and circumstances of the case and in law, the Ld CIT(A) has erred in holding that the appellant is not eligible for benefit as per section 115U of the Act as investments made by SARA fund are not in specified Venture Capit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elopment of Japanese and global economy by supporting the socioeconomic development, recovery or economic stability of developing regions. JICA extends official development assistance (ODA) to Ministry of Finance, Dept of Economic Affairs, Government of India for social & infrastructure projects (like the WB & ADB). New JICA was inaugurated on October 01, 2008 with a merger between the existing Japan International Cooperation Agency and the overseas economic cooperation section of the Japan Bank for International Cooperation ('JBIC'). JICA only has a Representative Office in India at 2nd Floor, Gopal Das Bhawan, 28, Barakhamba Road, Connaught Place, New Delhi - 110 001 whose role is of a co-coordinator of investment in South Asian Regional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disregarded the submissions made by the appellant and passed an assessment order under section 143(3) r.w.s. 144C(3) of the Act on 15 April 2015 (received on 17 March 2015) making the following additions/ disallowances: (i) Disallowance of exemption claimed under section 10(34) of the Act on Dividend income amounting to Rs. 1,31,404/-. (ii) Disallowance of exemption claimed under section 10(38) of the Act on long term capital gain amounting to Rs. 69,89,987/-. Based on the above adjustments made by the Assessing Officer, the total taxable income of the appellant has been recomputed at Rs. 71,21,390 as against the returned income of Nil. An additional demand of Rs. 19,91,255 has been raised on the assessee including interest under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 115-R whereas, the conditions laid down u/s 115-0 to avail the exemption u/s 10(34), is to be complied with at the level of venture capital undertaking and not at the stage when the investor, the assessee in this case, received the dividend income from VCF. So, the assessee is entitled for exemption u/s 10(34) of the Act and its share of dividend income is out of dividend income received by SARA fund. When the company with which SARA Fund has been invested, had already paid additional income tax on the earned dividend as required u/s 115-0 of the Act, SARA fund was not required to pay additional income tax second time on the same income. Consequently, grounds No. 1(1) and 1(11) of I.T.A. No. 3284/Del/2012 and Ground No. l of I.T.A. No. 570 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dentical in the present assessment year i.e. 2012-13 as well to that of earlier year 2006-07, 2007-08 and 2010-11. We find that the assessee has furnished complete details of computation which are exhibited at pages 153 to 154 of the paper book/appeal memo. The said computation was not disputed by the Revenue at any stage. Therefore, the Assessing Officer as well as the CIT(A) were not justified in making the said addition of dividend income and long term capital gain. Ground Nos. 1 to 3, 3.1 and 3.2 are allowed. As regards to Ground No. 4, the same is not required for adjudication. As regards to Ground Nos. 5, the same is consequential, hence the same is allowed in view of the findings on Ground Nos. 1 to 3, 3.1 and 3.2. As regards to Grou ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
