Tribunal held that the conditions laid down under section 115-O to avail of the exemption under section 10(34), were to be complied with at the level of venture capital undertaking and not at the stage when the investor, the assessee, received the dividend income from venture capital undertaking. The assessee’s share of dividend income was out of dividend income received by the Apex Fund and so, it entitled to the exemption under section 10(34) of the Act. When the company with which the Apex Fund had been invested, had already paid additional Income-tax on the earned dividend as required under section 115-O of the Act, the Apex Fund was not required to pay additional Income-tax a second time on the same income. The person who made investment in the venture capital company or venture capital fund, the assessee in this case, earned the income out of such investment which income was to be treated firstly as investment directly in the venture capital undertaking and the venture capital fund or venture capital company was only a pass through vehicle. So, in these circumstances, the assessee-company was entitled to book expenditure incurred by the Apex Fund as if it had been incurred by the assessee directly in the venture capital fund. The assessee had furnished complete details of computation which had not been disputed by the Department. Therefore, the Assessing Officer and the Commissioner (Appeals) were not justified in disallowing the exemption on dividend income and long-term capital gains.  Consequently the levy of interest and initiation of penalty proceedings were liable to be quashed. (AY. 2012-13)