COMMISSIONER OF INCOME TAX Vs. ALKA BHOSLE

JUDGEMENT

(1.) The following question of law has been formulated in the appeal by the Revenue under Section 260A of the Income Tax Act, 1961:

(2.) Section 94(7) of the Income Tax Act, 1961, as it stood at the material time, reads as follows:

(3.) The dispute in the present case relates to Assessment Year 2004-05. The question that falls for consideration is as to whether the conditions spelt out in Clauses (a), (b) and (c) of Sub-section (7) are cumulative. In the present case, the assessee had purchased certain units within a period of less than three months from the record date, but admittedly, the units were sold beyond a period of three months from the record date. The contention of the Revenue is that though the units were, as a matter of fact, sold beyond a period of three months of the record date, the provisions of Section 94(7) would apply since they were acquired within a period of three months of the record date.