Subhash E. Dhargave Vs. Milestone Real Estate Funds

Parties Involved

Facts Summary

The assessee, Milestone Real Estate Funds, a venture capital fund, filed an income return for the Assessment Year 2016-17 declaring an income of Rs. 19,23,29,278/-. The Assessing Officer denied the benefit claimed by the assessee under sections 10(23FB) and 10(35) of the Income Tax Act, 1961. On appeal, the Commissioner of Income Tax (Appeals) allowed the exemption in favor of the assessee, which the Revenue is now appealing against. The assessee argued that it was entitled to the exemptions based on previous decisions of the Tribunal. The Tribunal upheld the Commissioner's decision, finding that the assessee qualified as a Venture Capital Fund under SEBI regulations and that its investments in the real estate sector were not in violation of the relevant provisions.…

Legal Issues

• 1. CIT(A) deleting the addition made by the Assessing Officer and allowing the exemption of Rs. 1,33,09,44,019/-, u/s 10(23FB) of the Income Tax Act, 1961.
• 2. CIT(A) allowing the exemption u/s 10(35) of the Act amounting to Rs. 3,62,17,856/-, earned from distribution from units held in mutual funds.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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