Assessee had claimed exemption under S.10(38) in respect of long term capital gains on purchase and sale of units of a Venture Capital Fund contending that transactions giving rise to LTCG had suffered Securities Transaction Tax. AO held that , no exemption was available for such long-term capital gains and Securities transaction Tax liability was borne by concerned Venture Capital Fund and not by assessee. Allowing the appeal of the assessee the Tribunal held that , Form No. 64 specified in rule 12C which is to be furnished by Venture Capital Fund was filed by assessee which meant that Venture Capital Fund had complied with conditions set out in Explanation 1 to section 10(23FB). Accordingly the assessee is entitled to exemption.( AY. 2008-09)