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2010 (9) TMI 416 - AT - Income TaxDisallowance of loss u/s 94(7) - During the course of assessment proceedings the AO found that the assessee company entered into transaction of purchase and sale of Sundaram Bond Saver (Mutual Fund) - The AO was of the view that since the units were sold within three months before the record date, therefore the falls under the provisions of section 94(7) of the Act - AO disallowed the loss to the extend of dividend received by the assessee of Rs. 30,74,808 - The learned AR further submitted that the units were purchased on 26/12/2003, thus they were not acquired prior to the record date but were acquired on the record date - The learned AR also contended the theme of logical interpretation and submitted that if the logical interpretation of see - When the law is very clear on the point of reckoning of limitation and expiry of limitation, then, in the case in hand the limitation starts on 27.12.2003 by excluding the record date - This issue is decided against the assessee and in favour of the Revenue Bogus transaction - As regard the balance amount of Rs. 370,393 when the transactions are between the non-related parties and the AO has not given any finding as to how the transaction is bogus - This issue is decided against the revenue and in favour of the assessee
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