https://www.taxtmi.com/caselaws?id=36295 Section 44F of the Indian Income-tax Act, 1922 was aimed at deliberate tax avoidance through artificial devices or bond-washing transactions involving securities. A genuine transfer made before dividends were declared, where the assessee had divested itself of the source of income, did not amount to a sham or mala fide arrangement. Mere reduction of tax liability, without an artifice that left the income effectively with the transferor, was insufficient to attract the provision. Accordingly, the section did not apply and the amount was not taxable in the assessee's hands. en-us Wed, 27 Aug 1980 00:00:00 +0530 Sat, 20 Mar 2010 14:29:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36295 Section 44F of the Indian Income-tax Act, 1922 was aimed at deliberate tax avoidance through artificial devices or bond-washing transactions involving securities. A genuine transfer made before dividends were declared, where the assessee had divested itself of the source of income, did not amount to a sham or mala fide arrangement. Mere reduction of tax liability, without an artifice that left the income effectively with the transferor, was insufficient to attract the provision. Accordingly, the section did not apply and the amount was not taxable in the assessee's hands. Case-Laws Income Tax Wed, 27 Aug 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36295