https://www.taxtmi.com/caselaws?id=786609 Section 10(23FB) continues to give pass-through exemption to a SEBI-registered Venture Capital Fund only where the income arises from investment in a venture capital undertaking tested under the SEBI Venture Capital Funds Regulations. The investee's status is assessed in substance by reference to the investment structure, scheme documents, SEBI filings and the stated business model. On the stated facts, the healthcare acquisition structure through special purpose vehicles showed a genuine venture capital undertaking, not a mere financial accommodation arrangement, and the absence of full commercial operations during the year did not defeat eligibility. The exemption therefore applied and the disallowance was deleted. en-us Fri, 30 Jan 2026 00:00:00 +0530 Mon, 16 Feb 2026 09:13:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=786609 Section 10(23FB) continues to give pass-through exemption to a SEBI-registered Venture Capital Fund only where the income arises from investment in a venture capital undertaking tested under the SEBI Venture Capital Funds Regulations. The investee's status is assessed in substance by reference to the investment structure, scheme documents, SEBI filings and the stated business model. On the stated facts, the healthcare acquisition structure through special purpose vehicles showed a genuine venture capital undertaking, not a mere financial accommodation arrangement, and the absence of full commercial operations during the year did not defeat eligibility. The exemption therefore applied and the disallowance was deleted. Case-Laws Income Tax Fri, 30 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=786609