https://www.taxtmi.com/caselaws?id=794856 Dividend-stripping losses can be denied only within the specific statutory framework of section 94(7), and dividend cannot be recharacterised as return of capital unless that provision applies. The text explains that the conditions under section 94(7) are cumulative, including the prescribed purchase and sale timing requirements, and that failure to satisfy those conditions prevents reduction of dividend from the cost of acquisition of units. It also states that general allegations based on survey material are insufficient without material linking the taxpayer to a sham arrangement. The subject-matter emphasises that dividend stripping is not treated as sham per se and that any denial of loss must rest on the statute. en-us Wed, 08 Jul 2026 00:00:00 +0530 Mon, 13 Jul 2026 09:18:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=794856 Dividend-stripping losses can be denied only within the specific statutory framework of section 94(7), and dividend cannot be recharacterised as return of capital unless that provision applies. The text explains that the conditions under section 94(7) are cumulative, including the prescribed purchase and sale timing requirements, and that failure to satisfy those conditions prevents reduction of dividend from the cost of acquisition of units. It also states that general allegations based on survey material are insufficient without material linking the taxpayer to a sham arrangement. The subject-matter emphasises that dividend stripping is not treated as sham per se and that any denial of loss must rest on the statute. Case-Laws Income Tax Wed, 08 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=794856