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TMI Blog2014 (5) TMI 583X X X X Extracts X X X X X X X X Extracts X X X X ..... ident This appeal is filed by the Revenue. The relevant assessment year is 2006-07. The appeal is directed against the order of the Commissioner of Income Tax (Appeals)-VI at Chennai, dated 17.7.2009 and arises out of the assessment completed under Section 143(3) of the Income-tax Act, 1961. 2. The assessee in the present case has earned short term capital gains as well as suffered short term ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es (P) Limited and the short term capital loss on sale of shares of that company has been set off against the short term capital gains. 5. The Assessing Officer found that the shares, which resulted in capital loss on sale (216000 shares), were purchased on 8.10.2005 and sold on 24.11.2005. But, the Assessing Officer found that even though the date of sale of those shares were claimed to be 24.11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the loss making shares were sold on 24.11.2005 and not on 29.11.2005 and therefore, it is to be considered that those shares were sold before declaring the dividend and as such, there cannot be a case of dividend stripping against the assessee. He, accordingly, accepted the computation of income furnished by the assessee and set aside the adjustment made by the Assessing Officer. The Revenue is ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing over of scrips cannot be accepted. These are governed by statutory provisions and transfer as per such statutory provisions alone can be recognized for the purpose of taxation. Therefore, we agree with the Assessing Officer that the shares were actually sold by the assessee only on 29.11.2005. It is to be seen that the dividends were declared on 25.11.2005 and received by the assessee on 29.11 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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