Provisions of section 94(1) had not been applied in case of actual owner of securities from whom same were bought by assessee, provisions of section 94(4) could not be invoked in case of assesse. transactions of purchase and sale of bonds in question not being carried on during course of business was not a business activity, hence, provisions of section 94(4) would not be applicable. ( AY. 1992-93)
DCIT v. Growmore Leasing & Investment Ltd. (2018) 168 ITD 1 (Mum) (Trib.)
S. 94 : Transaction in securities –loss on shares- Avoidance of tax by certain transactions in (Purchase and sale of bonds) –Transaction was not in the course of business hence provision of S.94(1) can not be applied [ S. 94(4) ]