https://www.taxtmi.com/caselaws?id=445226 The ITAT ruled in favor of the assessee, determining that income from the sale of shares by an AIF through a venture capital fund qualifies as long-term capital gains exempt under Section 10(38) of the Income Tax Act, provided the shares have suffered STT. The Tribunal directed the AO to delete additions made towards these gains, allowing the assessee's appeal. The Tribunal emphasized that the AIF functions as a pass-through entity, making gains or losses assessable in the hands of unit holders. Consequently, the AO and CIT(A) erred in taxing the distributed income, and the appeal was allowed in Chennai on 30th August 2023. en-us Wed, 30 Aug 2023 00:00:00 +0530 Wed, 18 Dec 2024 17:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445226 The ITAT ruled in favor of the assessee, determining that income from the sale of shares by an AIF through a venture capital fund qualifies as long-term capital gains exempt under Section 10(38) of the Income Tax Act, provided the shares have suffered STT. The Tribunal directed the AO to delete additions made towards these gains, allowing the assessee's appeal. The Tribunal emphasized that the AIF functions as a pass-through entity, making gains or losses assessable in the hands of unit holders. Consequently, the AO and CIT(A) erred in taxing the distributed income, and the appeal was allowed in Chennai on 30th August 2023. Case-Laws Income Tax Wed, 30 Aug 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445226