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2017 (1) TMI 1031 - HC - Income TaxDividend Stripping Transaction - Transaction Transactions entered into with the Mutual Fund - whether represented business transactions - Loss arising in the course of Dividend Stripping - Held that:- This very issue has been dealt by Hon'ble Apex Court in the case of Commissioner of Income-Tax v. Walfort Share and Stock Brokers P. Ltd. reported in (2010 (7) TMI 15 - SUPREME COURT ) held that losses over and above the amount received as dividends still be allowed in a case where it was established that there was a sale and the assessee had received the dividend and the dividend was tax free. This question is, therefore, decided in favour of the assessee and against the department. Addition u/s 68 - unexplained money in the guise of share transactions - Held that:- This question answered in favour of the assessee as the Tribunal has recorded detailed findings of fact confirming the earlier findings of the CIT stating that the transactions of shares that was made by the assessee in respect of blue chip companies and the rates at which purchases and sales had been made could not be shown to be manipulated. The department was unable to discharge the burden that was on it to prove that the transactions were in any manner bogus or fictitious.
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