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TMI Blog2014 (12) TMI 1250X X X X Extracts X X X X X X X X Extracts X X X X ..... JUDGMENT K. S. Jhaveri, J. 1. Since, the issue involved in both the appeals is common, they are heard together and disposed of by this common judgment. 2. These are the appeals by the appellant- Revenue, seeking to assail the order of the learned ITAT, Ahmedabad Bench (for short, 'the Tribunal'), Dated : 08.09.2006, rendered in ITA Nos. 1566 & 1568/Ahd/2006 for A.Y. 2002-03, whereby, the Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his Court framed the following question of law; "Whether on the facts and circumstances of the case, the Appellate Tribunal was right in allowing the short term capital loss on sale of mutual funds within one day after earning tax free dividend income thereon?"" 5. At the very outset, Mr. Hemani, learned Advocate for the assessees in respective appeal, submitted that the question framed by this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a pre-meditated transaction of buying and selling units yielding exempted dividends with full knowledge about the fall in the NAV after the record date and the payment of tax-free dividend and, therefore, loss on sale was not genuine. We find no merit in the above argument of the Department. At the outset, we may state that we have two sets of cases before us. The lead matter covers assessment yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 ITR 706(SC)] it has been held that a citizen is free to carry on its business within the four corners of the law. That, mere tax planning, without any motive to evade taxes through colourable devices is not frowned upon even by the judgment of this Court in McDowell & Co. Ltd.'s case (supra). Hence, in the cases arising before 1.4.2002, losses pertaining to exempted income cannot be disallow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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