Japan International Co-Operation Agency vs Addl. CIT
Japan International Cooperation Agency (‘JICA’) was established as an Incorporated Administrative Agency to contribute to the promotion of international cooperation as well as the sound development of Japanese and global economy. The assessee filed its return of income for the subject assessment year declaring income of Nil. The return was picked up for scrutiny assessment vide notice issued under section 143(2). The Assessing Officer disregarded the submissions made by the appellant and passed an assessment order under section 143(3) r.w.s. 144C(3) making the following additions/ disallowances:
(i) Disallowance of exemption claimed under section 10(34) on Dividend income
(ii) Disallowance of exemption claimed under section 10(38) on long term capital gain
The total taxable income of the appellant has been recomputed as against the returned income of Nil. An additional demand has been raised on the assessee including interest under section 234B and notice under section 271(l)(c) was issued for initiating the penalty proceedings. Read more
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.