https://www.taxtmi.com/caselaws?id=7120 Section 44F of the Income-tax Act, 1922 was construed as an anti-avoidance provision aimed at deliberate transactions entered into to reduce tax on income from securities, so it did not cover bona fide dealings or incidental tax reduction. The term "income from securities" was held to mean periodic yield such as interest or ordinary dividend, and it did not extend to a statutory fictional dividend arising on liquidation under section 2(6A)(c), which was treated as capital in substance. The proviso to section 44F(3) required both an exceptional, non-systematic instance and no similar avoidance in the preceding three years; it failed where prior avoidance had occurred. en-us Mon, 15 Jan 1968 00:00:00 +0530 Tue, 10 Feb 2009 19:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7120 Section 44F of the Income-tax Act, 1922 was construed as an anti-avoidance provision aimed at deliberate transactions entered into to reduce tax on income from securities, so it did not cover bona fide dealings or incidental tax reduction. The term "income from securities" was held to mean periodic yield such as interest or ordinary dividend, and it did not extend to a statutory fictional dividend arising on liquidation under section 2(6A)(c), which was treated as capital in substance. The proviso to section 44F(3) required both an exceptional, non-systematic instance and no similar avoidance in the preceding three years; it failed where prior avoidance had occurred. Case-Laws Income Tax Mon, 15 Jan 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7120