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TMI Blog2006 (7) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... - I. T. A. Nos. 558 and 559 of 2005 - - - Dated:- 7-7-2006 - JUDGMENT 1 This order will dispose of ITA 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 assessing officer, the appellate authority as well as the Tribunal held that the investment in units of JM Mutual Fund was merely to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basic characteristic of the trade mentioned above is lacking in these cases. Both the assessees before us adopted the same modus operandi since the amounts of purchases, sales, net profit etc. are same. All the transactions were effected through Kotak Mahindra Ltd. Even the purchase of units was also financed by that concern. In fact, it appears to be package deal between assessees and that conc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tomer for earning tax free dividend income. On overall consideration of all the facts, it is clear that there was no intention to earn profits on sale of such units particularly when such units were intended to be sold immediately, after declaration of trade which was lacking in these transactions as there was no possibility of getting higher price on sale of units after declaration of dividend. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... B Actual loss (A-B) = Rs. 1,00,00,000 1,35,000 Rs. 98,65,000 14,803 98,79,803 68,25,806/- 29,03,226/- 97,29,032 1,50,771 It is this loss of Rs.1,50,771/- which can be adjusted or set off against current year's income and, if not adjustable, can be carried forward to next year. Had there been any su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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