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2012 (8) TMI 494 - ITAT, PUNEDenial of entitlement of u/s.10(23FB) - assessee is engaged in the business of providing venture capital by way of investment in equity capital - Held that:- Condensing the assessee's chart in its submission where it is shown that when the management and administration expenses are reduced from the corpus figure then the eligible investments in Venture Capital Undertakings have achieved the stipulated minimum percentage of 66.67% in two other years apart from the current Assessment Year i.e., during F.Y. 2006- 2007 and 2007-2008. Under the circumstances, the appellant’s contention that the stipulated condition under SEBI Regulation 12(d) for being eligible to exemption under 10 (23FB) of the Income Tax Act have been fulfilled, is acceptable, and the assessee is entitled to exemption u/s.10 (23FB). AO's reliance on CIT (A)'s order for AY 2004-05 is erroneous to the extent that the term ‘investible funds’ has not been examined and wrongly considered to mean the corpus, whereas, in fact the term ‘investible funds’ have been defined under SEBI regulations in regulation (hh) as ‘investible funds’ means corpus of the fund net of expenditure for administration and management of the fund;’ and taking into consideration the same if the working is made as has been done herein above, it can be seen that the assessee had already achieved the conditions prescribed - Following this decision of CIT (A)-II for the Assessment Year 2004-2005, it is held that the exemption u/s.10 (23FB) is available to any income of the assessee, be it interest, dividend, etc. - in favour of assessee.
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