No tax on share premium when issued to Venture Capital Fund

ACIT Vs Drishti Soft Solutions Pvt. Ltd (ITAT Delhi) The ITAT, Delhi, in ACIT v. Drishti Soft Solutions Pvt. Ltd. [ITA No. 8523/Del/2019 dated February 10, 2023] upheld the order passed by the Commissioner of Income Tax (Appeals) (“CIT(A)”) and dismissed the appeal filed by the Revenue Department and held that no tax would be levied on the issue of shares to venture capital fund and further upheld the observation of CIT(A) that, payment for valuation certification and retainership fees to a CA  firm is a revenue expenditure. Facts: Drishti Soft Solutions Pvt. Ltd. (“the Respondent”) i...