TaxTMI 
TaxTMI 
TaxTMI 
2016 (2) TMI 839
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.... the Income-tax Act, 1961 (hereinafter 'the Act'). 3. The AO was of the opinion that the assessee does not qualify for the exemption and made addition. Aggrieved the assessee preferred an appeal before the CIT (A) who was pleased to delete the same holding that the assessee is in fact qualify for the exemption as claimed by the assessee. For the sake of clarify, the relevant portion of the order of the ld. CIT (A) is reproduced hereunder :- "2.3 The exemption under Section 10(8) of the Act is admissible to an individual who is assigned to duties in India in connection with any cooperative technical assistance program or project in pursuance of an agreement between the Governments of India and USA. Two other conditions are that the terns ....
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....ance Project funded by the USAID. From the details submitted, it appears that the prime contractor in the said project was Constella Futures International and Engender Health, the employer of the assessee, was a subcontractor. However, the said party was a subcontractor specifically for the IFPS II project. Under the circumstances, it does appear that the assessee was working on a project which was funded by the USAID. That being so, it can also not be said that the assessees remuneration was not indirectly paid by the USAID. In the assessment order for A.Y. 2008-09, the AO has referred to the insertion of subsections 8A & 8B in section 10 by the Finance Act 1991. The AO has tried to show that the case of the assessee was covered by section....
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....s a result of an agreement entered into by the governments of India and the USA for innovation in family planning services. The clauses of the agreement provides for exemption of remuneration from taxation. Since all the conditions are satisfied, there is no doubt that the income/remuneration received by the appellant was exempt from tax". Even the ITAT has held that on the facts available on record the income of the assessee is "undisputedly exempt from tax". 2.5 In view of the above, it is held that assessee is entitled to exemption." 4. Aggrieved by the said deletion of the addition of Rs. 25,67,236/-, the revenue is in appeal before us. 5. The ld. DR contended that the assessee received salary in connection with "technical assista....
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.... exemption at pages 30 to 32 and the appointment letter dated 30.06.2007, which is placed at page 33 of the paper book, and also letter of confirmation from the employer Engender Health to ITO which is placed at page 34, to support the argument that the assessee is in fact eligible for the exemption u/s 10 (8) of the Act. In the light of the same, the ld. AR does not want us to interfere with the order of the ld. CIT (A) and wants us not to disturb the same. 7. We have heard both the parties and perused the record. Section 10 (8) of the Act which reads as under :- "10(8) In the case of an individual who is assigned to duties in India in connection with any co-operative technical assistance programmes and projects in accordance with an ag....
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.... specifically confirmed that the payments made to the assessee are made out of funds received from agency like United States Agency for International Development and all the funds are received in Dollars and paid to assessee after converting into Indian currency. The agreement dated 30.09.1992 between the United States of America and the Union of India is placed from pages 15 to 29 of the paper book in which the term of section 8.3 states as follows :- "SECTION 8.3. .......... The Parties agree that references to "the Grant" in Annex 2 shall include all goods, services, training, and contractor personnel provided by A.I.D./Washington in support of the Project. Therefore, for example, goods, services, training, and contractor personnel ....