Held that purchase and sale of units of mutual fund just before the record date of dividend acting on a publicly available notice issued by mutual fund and latter sold all units. Loss is allowable as short term capital loss. Transaction cannot be considered as avoidance of tax or fictitious or sham, provision of section. 94(7) is not applicable. (AY. 2016-17)
Goldiam International Ltd. v. DCIT (2024) 230 TTJ 1 / 238 DTR 33 / 38 NYPTTJ 411 (Mum)(Trib) Goldiam Jewelry v. Dy.CIT v. DCIT (2024) 230 TTJ 1 / 238 DTR 33 / 38 NYPTTJ 411 (Mum)(Trib)
S. 45 : Capital gains-Capital loss-Transaction in securities-Purchase and sale of units of mutual fund-Fictitious-Sham-Loss is allowable as short term capital loss-Transaction cannot be considered as avoidance of tax-Provision of section. 94(7) is not applicable. [S. 94(7)]