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2023 (2) TMI 417 - AT - Income TaxIncome from other sources taxable u/s 56(2)(viib) - Issue of shares at a premium - Addition on account of share premium valuation - HELD THAT:- CIT(A) after considering the submissions made by assessee has given a finding that the investor is a Venture Capital Fund (VCF) and assessee is a Venture Capital Undertaking. The aforesaid finding of CIT(A) has not been demonstrated by Revenue to incorrect or not in accordance with the provisions of the Act. Assessee has also demonstrated that the business of the assessee does not fall under the negative business list as specified by the Central Government. Revenue has not pointed to any fallacy in the findings of CIT(A) nor has demonstrated that the assessee’s case does not fall under proviso to Section 56(2)(viib) of the Act. No reason to interfere with the order of CIT(A) on this issue and thus the ground of Revenue is dismissed. Addition being expense for valuation certification u/s 37(1) - Professional fee paid for share valuation certificate - CIT-A deleted the addition - submission of the assessee that the payment is towards the professional fee, which include monthly retainership fees for the professional services - HELD THAT:- It is an undisputed fact that the aggregate amount has been paid to Vineet K. Gupta & Co. Chartered Accountant. We find that CIT(A) after considering the submissions made by assessee has given a finding that the expenses claimed by the assessee have been incurred during the regular course of business and cannot be treated as capital expenses. Before us, Revenue has not pointed to any fallacy in the findings of CIT(A).No reason to interfere with the order of CIT(A) and thus the ground of Revenue is dismissed.
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