The Tribunal held that the assessee satisfied the twin conditions prescribed under regulation 2(n) of the 1996 Regulations.  The assessee-company did not fall in the negative list of the Third Schedule to the 1996 Regulations, in view of the nature of business carried on by it. The assessee fulfilled the requisite conditions of being a venture capital undertaking. Therefore, the case of the assessee fell within the ambit of the exclusionary provision contained in the first proviso to clause (viib) of section 56(2) of the Act and the premium on issue of shares in question was not taxable.(AY. 2015-16)