TMI Blog2010 (6) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... the conditions spelt out in clauses (a), (b) and (c) of subsection (7) are cumulative. In the present case, the assessee had purchased certain units within a period of less than three months from the record date, but admittedly, the units were sold beyond a period of three months from the record date. Held that: From the Memoranda explaining respectively the Finance Bills of 2001 and 2004, it is evident that the conditions prescribed in clauses (a), (b) and (c) of Subsection 7 are intended to be cumulative in nature. – decided in favor of assessee - 2656 OF 2009 - - - Dated:- 9-6-2010 - DR.D.Y.CHANDRACHUD AND J.P.DEVADHAR, JJ. Mr.D.K.Kamwal for the Appellant. Mr.Atul K.Jasani with Mr.P.C.Tripathi for the Respondent. JUDGE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e units were sold beyond a period of three months from the record date. The contention of the Revenue is that though the units were, as a matter of fact, sold beyond a period of three months of the record date, the provisions of Section 94(7) would apply since they were acquired within a period of three months of the record date. 4. There is no merit in the submission. Subsection 7 of Section 94 spelt out three requirements; these being (i) The purchase or acquisition of any of the securities or units should take place within a period of three months prior to the record date; (ii) The sale or transfer should take place within a period of three months after the record date; and (iii) The dividend or income received or receivable should b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch loss does not exceed the amount of such dividend or income, in the computation of the income, chargeable to tax, of such person." (emphasis supplied). 6. By the Finance (No.2) Bill of 2004, the provisions of sub clause (b) were amended so as to provide a period of nine months for the transfer or sale of a unit. The Memorandum explaining the provisions of Finance (No.2) Bill of 2004 provide as follows: "It has been noticed that the condition specified in subsection (7) of section 94 requiring an investor to hold units for at least ninety days after the record date did not provide the desired effect. In order to provide further deterrence to tax-avoidance, it is necessary to provide for a longer period of holding of units after a rec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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