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2020 (11) TMI 522 - AT - Income TaxDisallowance of exemption claimed under section 10(34) on Dividend income - Disallowance of exemption claimed under section 10(38) on long term capital gain - HELD THAT:- From the perusal of the records, it can be seen that the issues contested by the assessee in the present assessment year 2013-14 are identical to that of A.Y. 2006-07 to 2008-09 & 2010-11 [2016 (2) TMI 882 - ITAT DELHI] wherein held CIT(A) have taken a wrong view by holding that the assessee cannot grow tax free income u/ss 10(34) and 10(35) of the Acts unless additional tax has been paid as per the provisions of Sections 115-O and 115-R of the Act and as such the exemption claimed u/ss 10(34) and 10(35) is to be allowed only if the dividend income distributed as per the provisions of Sections 115-O and 115-R whereas, the conditions laid down u/s 115-O to avail the exemption u/s 10(34), is to be complied with at the level of venture capital undertaking and not at the stage when the investor, the assessee in this case, received the dividend income from VCF. So, the assessee is entitled for exemption u/s 10(34) of the Act and its share of dividend income is out of dividend income received by SARA fund. As assessee has furnished complete details of computation which are exhibited at pages 153 to 154 of the paper book/appeal memo. The said computation was not disputed by the Revenue at any stage. Therefore, the Assessing Officer as well as the CIT(A) were not justified in making the said addition of dividend income and long term capital gain. - Decided in favour of assessee.
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