Interest income earned by joint venture FDRs prior to 1 April 2008 exempt under Section 10(23FB) of the Income Tax Act, 1961

ITO Vs Gujarat Information Technology Fund (ITAT Ahemdabad)- Interest income earned on bank deposit is exempt u/s 10(23FB) and there is no decision of SEBI that there is any violation of SEBI (Venture Capital Funds) Regulation 1996 and, therefore, the AO cannot hold that there was such violation. The AO is duty bound to inquire whether the assessee trust is registered under the Registration Act, 1908 and has been granted a certificate of registration by SEBI under SEBI (Venture Capital Funds) Regulations, 1996 and not beyond that.

IN THE INCOME TAX APPELLATE TRIBUNAL
AHMEDABAD BENCH “A” AHMEDABAD