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2016 (5) TMI 269 - HC - Income TaxAddition of speculation loss - amounts received from mutual funds/bonds as business income - Revenue contended that Unit Trust of India is a deemed company and income from units is also a deemed dividend therefore the units have to be considered to be shares covered by Section 73 - Held that:- The Apex Court in Apollo Tyres (2002 (5) TMI 5 - SUPREME Court ) negatived the above submission on behalf of the Revenue holding that the provisions of UTI Act creates a fiction to make Unit Trust of India a deemed company and the income received on its unit by an assessee to be deemed dividend. However the Court held that there is no deeming provisions for unit to be considered as share. Thus units are not shares. In the present facts also no specific provision has been pointed out to us which would deem the units in a mutual funds and/or bonds to be shares either for the purposes of the Act or for any other purposes. In that view of the matter, in our view, the decision of the Apex Court in Apollo Tyres Ltd. (supra) would cover the controversy arising for our consideration as units are not shares and therefore dealing in units cannot be considered to be shares. - Decided in favour of assessee
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