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2016 (2) TMI 269 - AT - Income TaxClaim of exemption u/s 10(23FB) - Held that:- In the instant case, there is no dispute with regard to the fact that the Registration granted to the assessee as Venture Capital Fund has not been withdrawn by the SEBI. Further, there is no material to show that the SEBI has alleged or stated that the assessee has not fulfilled any of the prescribed conditions. Hence, we are of the view that the tax authorities are not justified in rejecting the claim for exemption u/s 10(23FB) of the Act. The amendment brought into section 10(23FB) by the Finance Act, 2007 with effect from 1.4.2008 shall have prospective operation. In our view, it may not be appropriate to examine the scope or effect of amendment brought in the above secion w.e.f. 1.4.2008. Suffice to say that the interest income of the assessee shall also be entitled to exemption u/s 10(23FB) of the Act for the year under consideration. Hence any income of the venture capital fund set up to raise funds for investments shall be exempt for the year under consideration. Thus the assessee cannot be denied exemption u/s 10(23FB) - Decided in favour of assessee
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