AIF Exemption Cannot Be Denied Without Proper Income Characterisation: ITAT Chennai

DCIT Vs Sundaram Alternative Opp Series High Yield Secured Debt Fund (ITAT Chennai) Category II AIF Entitled to Section 10(23FBA) Relief Because AO Applied Wrong Legal Provisions; Processing Fee Not Automatically Business Income, Rules ITAT While Allowing AIF Exemption; ITAT Rejects Arbitrary Reclassification of Investment Returns as Business Income for AIF; Pass-Through Tax Benefit Restored Because Category II AIF Was Incorrectly Treated as Venture Capital Fund. The Income Tax Appellate Tribunal (ITAT), Chennai, dismissed the Revenue’s appeals for Assessment Years 2020-21 and 2022-23 an...