The Tribunal held that the assessee satisfied the twin conditions prescribed under regulation 2(n) of the 1996 Regulations.\u00a0 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\u00a056(2)\u00a0of the Act and the premium on issue of shares in question was not taxable.(AY. 2015-16)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 56 : Income from other sources-Issues of shares in excess of fair market value-Consideration received by Venture Capital Undertaking-Exception-Conditions prescribed satisfied-Premium of issue of shares not taxable. [S. 10(23FB), 56(2)(Viib), Securities and Exchange Board of India (Venture Capital Funds) Regulations, 1996, S. 2(n)].<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-36118","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-9oy","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/36118","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=36118"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/36118\/revisions"}],"predecessor-version":[{"id":36119,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/36118\/revisions\/36119"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=36118"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=36118"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=36118"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}