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2013 (9) TMI 1122 - ITAT BANGLOREAllowance of loss - Held that:- The provisions of section 94(8) of the Act are applicable only to "units" which means units of Mutual Funds only. There is no ambiguity in the matter as the Explanation in section 94(8) of the Act clearly defines "securities" as including "stocks and shares" and defines "units" to have the same meaning as assigned in Explanation to section 115AB of the Act; wherein "units" are defined as units of Mutual Funds only. In this view of the matter, the provisions of section 94(8) of the Act have no applicability to securities, which includes shares. CIT(Appeals) also observed that in a similar provision introduced to curb dividend stripping i.e. section 94(7) of the Act, both units and securities are included. Section 94(7) of the Act for "bonus stripping" was introduced by Finance Act, 2001 w.e.f. 1.1.2003 whereas section 94(8) of the Act for "bonus stripping" was introduced in Finance Act, 2004 w.e.f. 1.4.2005. Hence it can be inferred that the intention of legislative was to exclude the shares of companies from the ambit of the provisions of section 94(8) of the Act. In view of the above discussionwe concur with the finding of the learned CIT(Appeals) that there is no legislative authority to deny the loss intentionally created by the assessee; for what the law has not envisaged and has specifically excluded cannot be read into the same by the Assessing Officer. We, therefore, uphold the order of the learned CIT(Appeals).
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