INCOME TAX OFFICER 20(1)(1), MUMBAI, MUMBAI vs. ADITYA BIRLA PRIVATE EQUITY SUNRISE FUND, MUMBAI

ITA 4742/MUM/2026Status: DisposedITAT Mumbai26 August 202614 pages
AI SummaryDismissed

What were the facts?

The assessee, a Venture Capital Fund, claimed exemption under Section 10(23FB) for income from Venture Capital Undertakings and under Sections 10(34) and 10(35) for dividend and mutual fund income. The Assessing Officer denied these exemptions, stating that temporary investments in mutual funds violated SEBI regulations and the Trust Deed, and that claiming multiple exemptions was impermissible.

What did the Tribunal hold?

The Tribunal held that the Private Placement Memorandum (PPM) was incorporated into the Trust Deed, allowing temporary investments in mutual funds. It further ruled that an assessee can claim exemptions under different clauses of Section 10 for distinct streams of income without forfeiting their status as a Venture Capital Fund.

What were the issues?

Whether temporary investment of unutilised funds in mutual funds by a Venture Capital Fund violates SEBI regulations and the Trust Deed, and if an assessee can claim exemptions under multiple clauses of Section 10 simultaneously.

Which sections of the Income-tax Act were involved?

Section 10(23FB),Section 10(34),Section 10(35),Section 148,Section 2(31)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI

Before: SHRI VIKRAM SINGH YADAV & SHRI SIDDHARTHA NAUTIYAL

For Appellant: Ms. Sukanya Jayaram, CA &, Ms. Siddhi Jain, CA, Shri Manoj Kumar, CIT DR
Hearing: 17.08.2026Pronounced: 20.08.2026

Heard together (2 matters)

ITA Nos. 4742/Mum/2026
CO Nos. 230/Mum/2026

Read from the judgment's own cause title. This page is filed under one of them.

PER SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER:

ITA 4742/MUM/2026& CO. 230/Mum/2026 Aditya Birla Private Equity Sunrise Fund

This appeal is filed by the Department and cross objection filed by the assessee against the order of Ld. CIT(A) / NFAC, Delhi vide order dated

The order continues below.

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