TaxTMI 
TaxTMI 
2006 (7) TMI 147
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....llate Tribunal, New Delhi Bench "B" in I. T. A. No. 1584/Del/2005 relevant for the assessment year 2001-02. Broadly, the facts of the case are that the assessee purchased units of mutual funds on February 9, 2001, and sold them on February 11, 2001. Although it received the declared dividend of Rs. 43,54,838 yet he suffered an overall loss. The assessee adjusted its short-term capital loss agains....
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.... held in favour of the assessee. It was held that the transaction entered into by the assessee was not prohibited by law; the assessee was entitled to take advantage of the tax-free dividend; the genuineness of the transaction was not doubted by the Assessing Officer and finally there could be two opinions on the issue whether the assessee had resorted to a colourable device or not. The Assessing ....
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....to be satisfied of twin conditions, namely, (i) the order of the Assessing Officer sought to be revised is erroneous; and (ii) it is prejudicial to the interests of the Revenue. If one of them is absent if the order of the Income-tax Officer is erroneous but is not prejudicial to the Revenue or if it is not erroneous but is prejudicial to the Revenue-recourse cannot be had to section 263(1) of the....
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....ge that disallowance of a loss under section 94(7) of the Act in respect of such a transaction was effective only from the assessment year 2002-03, while we are concerned with the assessment year 2001-02. There was, therefore, a gap in the law which appears to have been exploited by the assessee. The Legislature appears to have recognised the lacuna and taken steps to rectify it. But that does not....