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

Before S/Shri M.K. Shrawat, JM and D.C.Agrawal, AM

ITA No.	C.O.No.	Asst. Year
2264/Ahd/2007		2003-04
245/Ahd/2009	24/Ahd/2009	2001-02
246/Ahd/2009	25/Ahd/2009	2004-05
247/Ahd/2009	26/Ahd/2009	2005-06
5. 2773/Ahd/2008	222/Ahd/200 8	2002-03

 

Income-tax Officer, Ward 10(2), Ahmedabad.	Vs.	Gujarat Information Technology Fund, 1st floor, Premchand House, Ashram Road, Ahmedabad.
(Appellant)	..	(Respondent)

 

Revenue by :-	Shri D. C. Patwari, CIT, DR & Shri S. A. Bohra, Sr.DR
Assessee by:-	Shri S. N. Soparkar, Sr.Advocate & Shri P. M. Mehta, AR

O R D E R

Per D.C. Agrawal, Accountant Member.

Since all these appeals and Cross Objections pertained to the same assessee and they involve common issue, they are taken up together for the sake of convenience. The lead year for the discussion is Asst. Year 2003-04. In this year the Revenue has raised following ground:-