VANEET JAIN Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS order will dispose of IT Appeal Nos. 558 and 559 of 2005.

(2.) THE appellant -assessee is aggrieved by disallowance of claim for loss on account of purchase and sale of securities.

(3.) THE AO, the appellate authority as well as the Tribunal held that the investment in units of JM Mutual Fund was merely to get benefit of dividend income under s. 10(33) of the IT Act, 1961 and the assessee was not otherwise engaged in the said business. The assessee projected that loss was incurred in purchasing units of JM Mutual Fund at higher price and selling the same at lower price after it became ex -dividend. It is not disputed that the assessee Rs. 5 lacs whereas the units were purchased to the extent of Rs. 1 crore by having the same financed. This clearly shows that there was no genuine business transaction and that no loss as projected was in fact incurred by the assessee. In the concluding part, the Tribunal observed as under :