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2014 (5) TMI 583 - ITAT CHENNAIDividend stripping - Scope of section 94 of the Act - Computation of income – Transaction in shares – Loss as well as profits made – Held that:-The shares which incurred loss on sale were actually sold on 29.11.2005 and not on 24.11.2005 - Transfer of shares is coming to effect when transferring entries are made in the registers maintained by the company – the transfers are governed by statutory provisions – the AO’s view is upheld that the shares were actually sold by the assessee only on 29.11.2005 - the dividends were declared on 25.11.2005 and received by the assessee on 29.11.2005 itself - the shares resulted in a loss were sold by the assessee after enjoying the dividends declared on that - u/s 94, it is a clear case of dividend stripping – the AO is justified in ignoring that loss and bringing to tax the entire amount of short term capital gains without setting off the short term capital loss – the order of the CIT(A) is upheld – Decided in favour of Revenue.
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