Validity of revision under section 263 over exemption for venture capital investments overturned and original assessment restored by higher fora

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Validity of revision under assessment revision power was contested where AO allowed exemption for investment in venture capital undertakings; HC/ITAT found AO had applied mind after detailed enquiry, making PCITs substitution of opinion impermissible, and restored the assessment. Tribunal noted investments taxed in unit holders hands so revenue suffered no prejudice, SEBI VCF Regulations permit temporary mutual fund investments, and the VCF Regulations (post amendment) no longer exclude real estate, so investments in real estate VCUs did not breach regulatory eligibility for the exemption.....