https://www.taxtmi.com/caselaws?id=283266 A dividend-stripping share purchase and resale arrangement was analysed on substance, not form, to determine whether it amounted to an adventure in the nature of trade. The key question was whether the transaction was a genuine share-dealing venture or merely a tax-recovery device dressed in trading terms. The fact that the shares were substantial, resalable and asset-backed did not by itself make the arrangement trading if its operative purpose was to split and recover tax. The claimed loss was therefore not treated as a deductible trade loss under section 341 of the Income Tax Act, 1952. en-us Wed, 14 May 1969 00:00:00 +0530 Tue, 17 Sep 2019 10:21:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=283266 A dividend-stripping share purchase and resale arrangement was analysed on substance, not form, to determine whether it amounted to an adventure in the nature of trade. The key question was whether the transaction was a genuine share-dealing venture or merely a tax-recovery device dressed in trading terms. The fact that the shares were substantial, resalable and asset-backed did not by itself make the arrangement trading if its operative purpose was to split and recover tax. The claimed loss was therefore not treated as a deductible trade loss under section 341 of the Income Tax Act, 1952. Case-Laws Indian Laws Wed, 14 May 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=283266