https://www.taxtmi.com/caselaws?id=76751 The SC ruled in favor of the assessee in a dividend stripping transaction case where the AO disallowed a loss of Rs. 2,09,44,793, claiming it was an artificial loss created for tax avoidance purposes. The SC distinguished between Section 14A (which deals with expenditure disallowance) and Section 94(7) (which applies to business loss claims), holding that Section 14A does not apply to losses arising subsequent to unit purchase and dividend receipt. The court emphasized the conceptual difference between loss, expenditure, and cost of acquisition, and found that Accounting Standard AS-13 was inapplicable since units were purchased at ruling NAV without vested dividend rights. The revenue's appeal was dismissed. en-us Tue, 06 Jul 2010 00:00:00 +0530 Thu, 08 May 2025 12:49:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=76751 The SC ruled in favor of the assessee in a dividend stripping transaction case where the AO disallowed a loss of Rs. 2,09,44,793, claiming it was an artificial loss created for tax avoidance purposes. The SC distinguished between Section 14A (which deals with expenditure disallowance) and Section 94(7) (which applies to business loss claims), holding that Section 14A does not apply to losses arising subsequent to unit purchase and dividend receipt. The court emphasized the conceptual difference between loss, expenditure, and cost of acquisition, and found that Accounting Standard AS-13 was inapplicable since units were purchased at ruling NAV without vested dividend rights. The revenue's appeal was dismissed. Case-Laws Income Tax Tue, 06 Jul 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=76751