2014 (12) TMI 1250

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....ponent : Tushar P. Hemani (Advocate) JUDGMENT K. S. Jhaveri, J. 1. Since, the issue involved in both the appeals is common, they are heard together and disposed of by this common judgment. 2. These are the appeals by the appellant- Revenue, seeking to assail the order of the learned ITAT, Ahmedabad Bench (for short, 'the Tribunal'), Dated : 08.09.2006, rendered in ITA Nos. 1566 & 1568/....

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..... At the time of admitting the present appeal, this Court framed the following question of law; "Whether on the facts and circumstances of the case, the Appellate Tribunal was right in allowing the short term capital loss on sale of mutual funds within one day after earning tax free dividend income thereon?"" 5. At the very outset, Mr. Hemani, learned Advocate for the assessees in resp....

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....he assessee had purposely and in a planned manner entered in to a pre-meditated transaction of buying and selling units yielding exempted dividends with full knowledge about the fall in the NAV after the record date and the payment of tax-free dividend and, therefore, loss on sale was not genuine. We find no merit in the above argument of the Department. At the outset, we may state that we have tw....

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.... this Court in Union of India v. Azadi Bachao Andolan [2003] [263 ITR 706(SC)] it has been held that a citizen is free to carry on its business within the four corners of the law. That, mere tax planning, without any motive to evade taxes through colourable devices is not frowned upon even by the judgment of this Court in McDowell & Co. Ltd.'s case (supra). Hence, in the cases arising before 1....