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2014 (5) TMI 554 - ITAT MUMBAIApplicability of section 94(7) of the Act – Disallowance of claim of loss - Whether the amended provision of section 94(7) incorporated in the statute w.e.f. 1-4-2005 would be applicable to the assessment year for disallowing the claim of loss even in respect of units held for more than three months – Held that:- Under the un-amended provision, if units were sold within three months of the record date, then loss claimed to the extent of dividend income would be disallowed - in respect of units purchased prior to 3 months from the record date the provision of sec. 94(7) will not be applicable - as per the amended provisions if units are sold within the period of 9 months from the record date, then loss to the extent of dividend income will be disallowed. Relying upon Suri Sons. & others Versus Additional Commissioner Of Income-Tax [2009 (4) TMI 502 - ITAT AMRITSAR] - the amended provision u/s 94(7) as brought into the statute w.e.f. 1-4-2005 would apply prospectively w.e.f assessment year 2005-06 - the amended provisions u/s 94(7) which has been brought to the statute w.e.f. 1-4-2005 will not be applicable to the impugned assessment year 2004-05 - loss from units which were held for more than three months after the record date and sold thereafter cannot be subjected to disallowance as per the amended provision of section 94(7) – the matter is remitted back to the AO for verification of the details of period of holdings of units from the record date and compute the disallowance of loss u/s 94(7) of the Act as applicable for the assessment year 2004-05 – Decided in favour of Assessee.
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