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2017 (8) TMI 1418 - HC - Income TaxDisallowance invoking the provision of section 94(7) - Held that:- The Assessing Officer applied newly added clause(b) of section 94(7) of the Act and disallowed the loss claimed by the assessee in the process on such purchase and sale. We may record that with effect from 1.4.2005, the legislature has inserted clause(b) providing that if a person who has acquired securities or units prior to the record date and has sold or transferred such securities or units within three or nine months of such date respectively, the loss, if any, arising out of such transaction to the extent it does not exceed the amount of dividend or income received or receivable on such securities, shall be ignored for the purpose of computing his income chargeable to tax. In plain terms, this provision having been introduced with effect from 1.4.2005, would have the effect prospectively. In the present case, purchase and sale both were prior to 1.4.2005. This was the view taken by the Tribunal and we find no error.
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