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TMI Blog2020 (11) TMI 522X X X X Extracts X X X X X X X X Extracts X X X X ..... s 115-O and 115-R of the Act and as such the exemption claimed u/ss 10(34) and 10(35) is to be allowed only if the dividend income distributed as per the provisions of Sections 115-O and 115-R whereas, the conditions laid down u/s 115-O 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. As 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 n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s investments made by SARA fund are not in specified Venture Capital Undertakings ( VCU ) as per section 10(23FB) of the Act. 3.1 That on the facts and circumstances of the case and in law, Ld C1T(A) has erred in disallowing the exemption claimed by the appellant under section 10(34) of the Act on dividend income from VCU earned by SARA Fund. 3.2 That on the facts and circumstances of the case and in law, Ld CIT(A) has erred in disallowing the exemption claimed by the appellant under section 10(38) of the Act on long term capital gain from share sale of VCU earned by SARA Fund. 4. That the Ld CIT(A) has erred, in law and on facts and circumstances of the case, by not granting an opportunity of being heard to establish fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elhi - 110 001 whose role is of a co-coordinator of investment in South Asian Regional Apex (SARA) which was earlier coordinated by overseas economic cooperation section of JBIC. The representative office of JICA has not invested directly in the SARA Fund and only acts as a front office of JICA in India. Further, all loans are evaluated, granted and disbursed by JICA to Government of India (GOI)/PSUs directly from Japan. As on March 31, 2012, JICA held 27,500 units of SARA Fund @ ₹ 5,000 per unit. SARA Fund is a SEBI registered Venture Capital Fund ( VCF ) as per the SEBI venture capital fund regulations, 1996, whose objective is to provide equity assistance to Venture Capital Undertakings ( VCU ) in India. The Fund was set up as a tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Nil. An additional demand of ₹ 19,91,255 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. | 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. The Ld. AR submitted that for Assessment Year 2006-07, 2007-08, 2008-09 2010-11, the issues contested in the present appeal are decided in favour of the assessee by the Tribunal in ITA Nos. 3284/Del/2012 and 5705/Del/2010 order dated 29.01.2016 for A.Y. 2006-07 2007-08 as well as ITA No. 5332/Del/2011 and 1249/Del/2014 order dated 16.07.2020 for A.Y. 2008-09 2010-11. 6. The Ld. DR rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 5705/Del/2010 are determined in favour of the assessee. . 15.4 The issue in controversy is again required to be determined in consonance with the provisions contained u/s 115U discussed in the preceding paragraphs which mandates that venture capital company and venture capital fund is given the status of pass through vehicle for the purpose of treatment of income received on account of investment made in the venture capital undertaking. A person who makes investment in the venture capital company or venture capital fund, the assessee in this case, earned the income out of such investment which income shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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