TMI Blog2018 (4) TMI 1831X X X X Extracts X X X X X X X X Extracts X X X X ..... d from various sources and distributed to investors has to be taxed as such in the hands of the beneficiaries, therefore, there is no need for any exclusion in respect of the income admitted by the beneficiaries or not admitted by the beneficiaries. Since the details of the income and expenditure is not available in the Profit Loss account or in the document filed before this Tribunal, this Tribunal remitted back the matter to the file of the Assessing Officer for a limited verification to collect information from beneficiaries and allow pass through status in the hands of the assessee. AO misunderstood the direction of the Tribunal by picking up same words here and there. Hence, this Tribunal is of the considered opinion that the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ;), according to the Ld. counsel, this Tribunal found that the investor who received the income from venture capital undertaking as per provisions of Section 10(23FB) of the Act is exempted from taxation. According to the Ld. counsel, Section 115U of the Act is intended to grant tax concession to the recipient of income from venture capital undertaking and such income in the hands of investor shall be chargeable to tax as if it were income from venture capital undertaking made directly. Therefore, it is obvious from the order of this Tribunal that interest on the investment received by the beneficiaries cannot be assessed in the hands of the assessee and it has to be directly assessed in the hands of the beneficiaries as if the investment w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... correct in presuming that the interest income has to be assessed in the hands of the assessee-Fund. 4. Sh. R. Vijayaraghavan, the Ld.counsel for the assessee, further submitted that more than 600 beneficiaries are in the assessee-trust. Out of which, 50% of the beneficiaries are institutions, therefore, according to the Ld. counsel, the assessee may not be able to provide details of the return filed by each of the beneficiaries. However, the Assessing Officer may be in a better position to seek information from the respective beneficiaries in exercise of his statutory power / authority. Therefore, the Ld.counsel submitted that this Tribunal may clarify whether the assessee-Fund is a pass through vehicle for interest income from investme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income. Therefore, according to the Ld. D.R., the Assessing Officer has rightly found that the intention of this Tribunal was to grant relief only in respect of interest income which is offered to tax by the respective beneficiaries. In case of non-admission or incorrect admission of interest income, according to the Ld. D.R., it has to be assessed only in the hands of the assessee-Fund / trust, therefore, the Assessing Officer has rightly understood the order of this Tribunal and issued show cause notice. 7. We have considered the rival submissions on either side and perused the relevant material available on record. Prima facie it appears that there is a misunderstanding in appreciating the order of this Tribunal. This Tribunal at par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oss account or in the document filed before this Tribunal, this Tribunal remitted back the matter to the file of the Assessing Officer for a limited verification to collect information from beneficiaries and allow pass through status in the hands of the assessee. Therefore, the Assessing Officer misunderstood the direction of the Tribunal by picking up same words here and there at para 7.2 at page 34 of the order. Hence, this Tribunal is of the considered opinion that the Assessing Officer is not correct in saying that in case the income is not admitted / incorrectly admitted, it has to be assessed in the hands of the assessee. This Tribunal is of the considered opinion that whether the income is admitted by the respective beneficiaries or ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
