No demand of service tax as Venture Capital Trust was not a Juridical Person

India Advantage Fund III Vs Commissioner of Central Tax (Karnataka High Court)

Conclusion: Trust and the Investors could not be regarded as two separate entities as the Trust Fund utilized the investments received by it to re-invest the same. Hence, in the absence of contradicting evidence, the Court upheld the Doctrine of Mutuality that “a person could not make profit from self”. Therefore, Trust Funds could not be categorized as a ‘Juridical Person’ under the purview of the Indian Finance Act, 1994.

Held: Assessee was a venture cap

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