DCIT Vs UTI India Fund Unit Scheme (ITAT Mumbai)
ITAT Mumbai held that exemption under section 10(23D) of the Income Tax Act is available to UTI India Fund Unit Scheme 1986 as it is one of the scheme listed at sr. no. 37 in schedule II of the Repeal Act.
Facts-
During the course of the assessment proceedings, Assessing Officer observed that the assessee has claimed exemption u/s. 10(23D) of the Act and observed that the section 10(23D) of the Act itself confirms that the Mutual Fund should be registered with Securities and Exchange Board of India (SEBI). AO observed that the Certificate of Registration submitted by the assessee is for UTI Mutual fund and not for assessee trust i.e. UTI India Fund Unit Scheme 1986. Thus, AO denied the exemption u/s. 10(23D) of the Act.
CIT(A) allowed the appeal of the assessee. Being aggrieved, revenue has preferred the present appeal.
Conclusion-
Held that the assessee fund is one of the schemes listed in Schedule II (Sr. No. 37) of the Repeal Act and vested with UTI Mutual Fund. With the above restructuring of the Act and since assessee was established to cater to the offshore funds it retained its identity separately from the other schemes and maintained separate books of accounts and continued with the same PAN. The assessee is registered under the various schemes listed in Schedule II of the UTI Mutual Fund which is listed at Sl. No. 37 shows that assessee’s scheme is one of the scheme approved by the SEBI and it need not have to have a separate registration by the SEBI. It is enough that the SEBI approves all the schemes equally under the Schedule II of the list which is vested with UTI Mutual Fund. Therefore, the observation of the Assessing Officer in order to grant exemption under section 10(23D) has to have a separate registration is uncalled for and the various documents submitted by the assessee proves that the offshore fund scheme maintained by the assessee is an approved unit by the SEBI. Therefore, we do not see any reason to interfere with the findings of the Ld. CIT(A). Accordingly, appeal filed by the revenue is dismissed.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
