ANIL JAIN Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) Lave granted.

(2.) On 7-2-2001, appellants herein invested a sum of Rs. one crore for purchasing units of J.M. Mutual Fund. For the said purpose they invested a sum of Rs. 5 lakhs and borrowed the rest of the amount, namely, Rs. 95 lakhs. On 10-2-2001, dividend of Rs. 29,03,225 was declared. On 11-2-2001, they sold the units for Rs. 68,25,806. They stated to have incurred a loss of Rs. 1,50,771.

(3.) One of the questions which arose for consideration before the assessing authority was as to whether the transaction in question was a business transaction and the income derived by the appellants was by way of "profit and gains from business".