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| The Tax Publishers2020 TaxPub(DT) 3777 (Mad-HC) : (2020) 429 ITR 0593 : (2020) 275 TAXMAN 0412 INCOME TAX ACT, 1961
Section 10(23FB)
Where exemption to assessee on long-term capital gains received from venture capital fund was denied on allegation that security transaction tax (STT) liability was borne by venture capital fund, and not assessee, considering fact STT paid on transaction was borne by assessee and same was debited to account of assessee by venture capital fund, exemption was to be allowed to assessee.
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Exemption under section 10(23FB) - Allowability - Allegation that security transaction tax (STT) liability was borne by venture capital fund, and not assessee -
AO disallowed exemption to assessee on long-term capital gains received from venture capital fund on allegation that security transaction tax (STT) liability was borne by venture capital fund, and not assessee. Held: Under section 115U(5), income received by the Venture Capital Fund is taxable on accrual basis, whether distributable or not to the investor. Therefore, the exemption under section 10(38) is not claimed on the distribution as stated by AO in its order. It was found that CIT(A) recorded factual finding that STT paid on transaction was borne by assessee and same was debited to account of assessee by venture capital fund as admitted by AO himself in assessment order. Tribunal after taking note of factual finding of CIT (A) affirmed said order. Thus, there was no substantial question of law arising against said order of Tribunal.
Followed:Japan International Cooperation Agency v. DDIT 2016 TaxPub(DT) 1197 (Del-Trib)
REFERRED : Gopal Srinivasan v. DCIT & Vice-Versa 2018 TaxPub(DT) 1064 (Chen-Trib)
FAVOUR : In assessee's favour
A.Y. : 2008-09
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