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2020 (10) TMI 189 - ITAT MUMBAIEntitlement for TDS credit - venture capital undertakings - proportionate share of contributors - deduction of TDS by the deductors on behalf of the assessee or not? - HELD THAT:- In the present case, the credit for TDS appearing in Form No. 26AS of the assessee, the assessee is entitled for TDS credit - assessee had furnished the details of income accrued/distributed to each of the contributors as per Form 64, therefore it was the responsibility of each of the contributors to include the income in their tax returns as reported in Form-64 by the assessee and pay the tax on the same. Since, all the details of the contributors were available with the AO, he could have verified the same. CIT (A) has rightly pointed out that the deduction of TDS by the deductors was on behalf of the assessee. Since, the information furnished by the deductors to Income Tax authorities refers to the assessee only and not to the investors, the AO was required to give credit to the assessee. - Decided in favour of assessee. Exemption u/s 10(23FB) - investments have been made by assessee in VCUs engaged in real estate activities which is neither a service nor activity involved in production and manufacture of article or things and therefore, will not be eligible to be claimed as VCUs as per the VCF regulation - HELD THAT:- As decided in own case [2018 (8) TMI 1046 - ITAT MUMBAI] after the assessee came into existence and started investing fund in Venture Capital Undertakings, real estate sector was not in the negative list of Securities and Exchange Board of India (Venture Capital Funds) Regulations, 1996. That being the case, the reasoning of the learned Principal Commissioner that the assessee is not eligible for exemption under section 10(23FB) of the Act is unsustainable. In this regard, it needs to be observed, the learned Principal Commissioner has stated that the amendment to section 10(23FB) by Finance Act, 2012, is prospective and will apply to assessment year 2013–14. There cannot be any dispute with the aforesaid observations of the learned Principal Commissioner.- undisputed fact is, the assessee has claimed exemption under section 10(23FB) of the Act for assessment year 2013–14. Hence, the provisions applicable to such assessment year would govern all issues relating to assessee’s claim of exemption. Applying the conditions of section 10(23FB) applicable to assessment year 2013–14, assessee’s claim of exemption under section 10(23FB) of the Act is allowable.- Decided in favour of assessee,
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