https://www.taxtmi.com/caselaws?id=151830 A deeming fiction must be confined to the legal effect expressly created by statute and cannot be extended to treat UTI units as shares unless the law specifically says so. On that footing, section 32(3) of the Unit Trust of India Act, 1963 was read as deeming only the UTI to be a company and distributions to unit-holders as deemed dividend, not as converting units into shares. The later amendment to the proviso to section 2(42A) with effect from assessment year 1995-96 was treated as supporting the opposite position only for subsequent years. The commentary records that the assessment was regarded as erroneous and prejudicial, and the capital gains were treated as short-term capital gains for the year concerned. en-us Tue, 23 Sep 2003 00:00:00 +0530 Mon, 17 Jun 2013 16:37:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=151830 A deeming fiction must be confined to the legal effect expressly created by statute and cannot be extended to treat UTI units as shares unless the law specifically says so. On that footing, section 32(3) of the Unit Trust of India Act, 1963 was read as deeming only the UTI to be a company and distributions to unit-holders as deemed dividend, not as converting units into shares. The later amendment to the proviso to section 2(42A) with effect from assessment year 1995-96 was treated as supporting the opposite position only for subsequent years. The commentary records that the assessment was regarded as erroneous and prejudicial, and the capital gains were treated as short-term capital gains for the year concerned. Case-Laws Income Tax Tue, 23 Sep 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=151830