https://www.taxtmi.com/caselaws?id=470072 Dividend received from mutual funds and related short-term capital losses cannot be treated as sham merely because survey material alleges manipulation by a fund manager. Section 94(7) regulates dividend-stripping transactions within its statutory scope but does not by itself invalidate genuine underlying transactions; assessee-specific evidence of knowing participation in tax evasion is required. Losses from alleged penny-stock transactions likewise require more than general classification or investigation reports. Documentary purchase records, banking-channel payments and regular share-trading activity are relevant to genuineness. For completed assessments, Section 153A additions require incriminating material found during the Section 132 search that specifically relates to the assessee. General allegations, without such material, do not justify disallowance of documented business losses. en-us Tue, 20 May 2025 00:00:00 +0530 Tue, 14 Jul 2026 19:02:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=470072 Dividend received from mutual funds and related short-term capital losses cannot be treated as sham merely because survey material alleges manipulation by a fund manager. Section 94(7) regulates dividend-stripping transactions within its statutory scope but does not by itself invalidate genuine underlying transactions; assessee-specific evidence of knowing participation in tax evasion is required. Losses from alleged penny-stock transactions likewise require more than general classification or investigation reports. Documentary purchase records, banking-channel payments and regular share-trading activity are relevant to genuineness. For completed assessments, Section 153A additions require incriminating material found during the Section 132 search that specifically relates to the assessee. General allegations, without such material, do not justify disallowance of documented business losses. Case-Laws Income Tax Tue, 20 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=470072