The DCIT, Circle-10, Ahmedabad V. Gujarat Bio Technology Venture Fund, Ahmedabad

ITA 310/AHD/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1011 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 5 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 20-07-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 01-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P M MEHTA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH (BEFORE SHRI S.K. YADAV, JUDICIAL MEMBER & SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER) ITA. NO: 310/AHD/2013 (ASSESSMENT YEAR: 2009-10) DY. COMMISSIONER OF INCOME-TAX, CIRCLE-10, AHMEDABAD V/S GUJARAT BIO-TECHNOLOGY VENTURE FUND 1 ST FLOOR, PREMCHAND HOUSE, ASHRAM ROAD, AHMEDABAD (APPELLANT) (RESPONDENT) PAN: AAAAG3330J APPELLANT BY : SHRI JAMES KURIAN, SR. D.R . RESPONDENT BY : SHRI P.M. MEHTA, A.R. ( )/ ORDER DATE OF HEARING : 20 -07-201 6 DATE OF PRONOUNCEMENT : 22 -07-2016 PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LD. CIT(A)- XVI, AHMEDABAD DATED 12.11.2012 PERTAINING TO A.Y. 2009-10. ITA NO. 310/ AHD/2013 . A.Y. 2009-10 2 2. THE SUBSTANTIVE GRIEVANCE OF THE REVENUE IS THAT TH E LD. CIT(A) ERRED IN LAW AND ON FACTS IN HOLDING THAT ASSESSEE HAS NOT V IOLATED THE SEBI REGULATIONS OF 1996 AND HENCE ENTITLED FOR EXEMPTIO N U/S. 10(23FB) OF THE ACT. 3. THE ASSESSEE COMPANY IS ENGAGED IN THE ACTIVITY OF PROVIDING VENTURE FINANCE ASSISTANCE TO BIO-TECHNOLOGY UNITS LOCATED WITHIN THE STATE OF GUJARAT. 4. WHILE SCRUTINIZING THE RETURN OF INCOME OF THE ASSE SSEE, THE A.O. FOUND THAT THE ASSESSEE HAS CLAIMED EXEMPTION U/S. 10(23F B) OF THE ACT. THE A.O. ASKED THE ASSESSEE TO JUSTIFY ITS CLAIM. ASSES SEE FILED A DETAILED REPLY WHICH DID NOT FIND ANY FAVOUR WITH THE A.O. 5. ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT(A) A ND REITERATED ITS CLAIM. 6. AFTER CONSIDERING THE FACTS AND THE SUBMISSIONS, TH E LD. CIT(A) WAS OF THE OPINION THAT THE FACTS OF ASSESSEES CASE ARE I DENTICAL TO THE FACTS OF THE GUJARAT INFORMATION TECHNOLOGY FUND WHEREIN THE CLAIM OF EXEMPTION OF THE ASSESSEE U/S. 10(23FB) HAS BEEN AL LOWED BY HIS PREDECESSOR AND CONFIRMED BY THE TRIBUNAL. THE LD. CIT(A) ACCORDINGLY DIRECTED THE A.O. TO ALLOW THE EXEMPTION TO THE ASS ESSEE. 7. AGGRIEVED BY THIS, THE REVENUE IS BEFORE US. 8. THE D.R. FAIRLY CONCEDED THAT A SIMILAR ISSUE HAS B EEN DECIDED BY THE TRIBUNAL IN FAVOUR OF THE ASSESSEE AND WHICH DECISI ON HAS BEEN FOLLOWED BY THE LD. CIT(A) . ITA NO. 310/ AHD/2013 . A.Y. 2009-10 3 9. WE HAVE CAREFULLY PERUSED THE ORDERS OF THE AUTHORITIES BELOW. WE HAVE ALSO GONE THROUGH THE DECISION OF THE TRIBU NAL IN THE CASE OF GUJARAT INFORMATION TECHNOLOGY FUND IN ITA NOS. 226 4/AHD/2007, 245/AHD/09, 247/AHD/09 & 2773/AHD/2008. 10. WE HAVE ALSO CAREFULLY PERUSED THE STATEMENTS OF IN COME DISTRIBUTED BY VENTURE CAPITAL COMPANY (ASSESSEE) E XHIBITED AT PAGES 114 AND 115 OF THE ACT, THE RELEVANT FINDINGS OF TH E CO-ORDINATE BENCH READS AS UNDER:- 34. THUS THE EFFECT OF AMENDMENT OF FINANCE ACT, 20 07 W.E.F. 1.4.2008 IN SECTION 10(23FB) IS CLEAR. BEFORE ASST. YEAR 2007-08 INCOME FROM VENTURE CAPITAL FUND FROM ANY SOURCE, ( WHETHER INCOME FROM INVESTMENT AS PER SEBI GUIDELINES OR FR OM ANY OTHER SOURCE) WOULD BE EXEMPT INCLUDING THE INTERES T INCOME OF F.D. IT IS ONLY FROM ASST. YEAR 2008-09 ONWARDS THE INCOME FROM INVESTMENT IN SPECIFIED UNDERTAKINGS WOULD BE EXEMP T AND OTHER INCOME WOULD BE TAXABLE. IN THIS REGARD WE MAY ADD THAT INCOME WHICH IS EXEMPT U/S 10(23FB) WOULD BE SHARED BY THE RESPECTIVE INVESTORS AND WOULD BE TAXABLE IN THEIR INDIVIDUAL HANDS AS PER SECTION 15(U) ALREADY REFERRED ABOVE. 11. THIS FINDING OF THE CO-ORDINATE BENCH WHEN SEEN IN THE LIGHT OF THE STATEMENTS OF ACCOUNT DISTRIBUTED WHICH ARE AT PAGES 114 TO 115, IN OUR CONSIDERED OPINION; THE BALANCE OF CONVENIEN CE IS TILTED IN FAVOUR OF THE ASSESSEE. ITA NO. 310/ AHD/2013 . A.Y. 2009-10 4 12. RESPECTFULLY FOLLOWING THE FINDINGS OF THE CO-ORDIN ATE BENCH, WE DECLINE TO INTERFERE WITH THE FINDINGS OF THE LD. C IT(A). APPEAL FILED BY THE REVENUE IS ACCORDINGLY DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 22 - 07 - 2 016. SD/- SD/- (S.K. YADAV) (N. K. BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: TRUE COPY RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHME DABAD