“Section 94(7)”

RAMESH PURSHOTTAM MODI ,MUMBAI vs. INCOME TAX OFFICER CIRCLE 22(1), MUMBAI

In the result, the appeal of the assessee is allowed

Bench: Shri Saktijit Dey & Shri Makarand Vasant Mahadeokarramesh Purshottam Ito Circle 22(1) Modi Income Tax 303, Modi House, Linking Vs. Department, Road, Khar West, Piramal Chamber, Mumbai-400 052 Dr. Ss Rao Marg, Parel, Mumbai 0 400 012 Pan/Gir No. Aahpm2793F (Applicant) (Respondent) Assessee By Shri Ashwani Kumar A/W Ms. Deepali Aggarwal, Ld. Ars Revenue By Shri Umashankar Prasad, Ld. Dr Date Of Hearing 12.02.2026 Date Of Pronouncement 19.02.2026

section 147 of the Act. The assessee further contended that the transactions relating to investment in mutual fund units and the applicability of section 94(7) and section 94(8) of the Act had already been examined by the Assessing Officer during the original scrutiny proceedings and, therefore, reopening ... learned AR further submitted that as per the alleged modus operandi, after receiving dividends and immediately after crossing the time limits prescribed under section 94(7) and 94(8), the units were to be redeemed. However, in the assessee’s case, being a genuine long-term investor, the majority

LADDERUP FINANCE LIMITED,MUMBAI vs. CIRCLE 14(1)(1), MUMBAI, MUMBAI

In the result the appeal filed by the assessee is allowed

Bench: Shri Amit Shukla & Shri Makarand Vasant Mahadeokarladderup Finance Circle 14(1)(1), Limited Mumbai 1St Floor Hallmark Vs. Aayakar Bhavan, Business Plaza, Mumbai-400 020 Gurunanak Hospital Road, Bandra (East), Mumbai- 400051 Pan/Gir No. Aaacl0882G (Applicant) (Respondent) Assessee By Shri Rushabh Mehta Revenue By Shri Surendra Mohan, Sr. Dr Date Of Hearing 20.01.2026 Date Of Pronouncement 27.01.2026

disallowed under section 36(1)(iii) of the Act. 4.4. Further, a sum of Rs. 2,800/- was disallowed under section 94(7) of the Act on account of dividend stripping, which was accepted by the assessee during the course of assessment proceedings. Penalty proceedings under section

DCIT, MUMBAI vs. SANJULA SUMATI KOTHARI, MUMBAI

In the result, all appeals filed by the Revenue stands dismissed

Bench: Smt. Beena Pillai () & Shri Omkareshwar Chidara ()

necessary to consider the intent of the legislation with respect to loss incurred in case of issue of dividend as considered in section 94(7) of the Act. The memorandum notes for bringing out the said section into statute as published in the CBDT Circular No.14/2001, the relevant extracts (Para ... held as non genuine merely because of issue of dividend by the JM Financial fund if the holding period is not covered by section 94(7). Coming to the validity of the assessee’s claim regarding the short-term capital loss/profit, it is noted that the appellant had made

DCIT, MUMBAI vs. SANJULA SUMATI KOTHARI, MUMBAI

In the result, all appeals filed by the Revenue stands dismissed

Bench: Smt. Beena Pillai () & Shri Omkareshwar Chidara ()

necessary to consider the intent of the legislation with respect to loss incurred in case of issue of dividend as considered in section 94(7) of the Act. The memorandum notes for bringing out the said section into statute as published in the CBDT Circular No.14/2001, the relevant extracts (Para ... held as non genuine merely because of issue of dividend by the JM Financial fund if the holding period is not covered by section 94(7). Coming to the validity of the assessee’s claim regarding the short-term capital loss/profit, it is noted that the appellant had made

DCIT, MUMBAI vs. LALITA KOTHARI, MUMBAI

In the result, all appeals filed by the Revenue stands dismissed

Bench: Smt. Beena Pillai () & Shri Omkareshwar Chidara ()

necessary to consider the intent of the legislation with respect to loss incurred in case of issue of dividend as considered in section 94(7) of the Act. The memorandum notes for bringing out the said section into statute as published in the CBDT Circular No.14/2001, the relevant extracts (Para ... held as non genuine merely because of issue of dividend by the JM Financial fund if the holding period is not covered by section 94(7). Coming to the validity of the assessee’s claim regarding the short-term capital loss/profit, it is noted that the appellant had made

DCIT, MUMBAI vs. KANTA GANPATLAL KOTHARI, MUMBAI

In the result, all appeals filed by the Revenue stands\ndismissed

held as non\ngenuine merely because of issue of dividend by the JM Financial fund if\nthe holding period is not covered by section 94(7). Coming to the validity\nof the assessee's claim regarding the short-term capital loss/profit, it is\nnoted that the appellant had made ... from such figures is not\ncorrect. Further, it is not the case of the AO that the appellant has\nviolated the provisions of section 94(7) of the Act.\n6.14 In the assessment order, it is noted that AO has heavily relied on\nfindings of survey action conducted in case

DCIT, MUMBAI vs. KANTA GANPATLAL KOTHARI , MUMBAI

In the result, all appeals filed by the Revenue stands dismissed

Bench: Smt. Beena Pillai () & Shri Omkareshwar Chidara ()

necessary to consider the intent of the legislation with respect to loss incurred in case of issue of dividend as considered in section 94(7) of the Act. The memorandum notes for bringing out the said section into statute as published in the CBDT Circular No.14/2001, the relevant extracts (Para ... held as non genuine merely because of issue of dividend by the JM Financial fund if the holding period is not covered by section 94(7). Coming to the validity of the assessee’s claim regarding the short-term capital loss/profit, it is noted that the appellant had made

DCIT, MUMBAI vs. ANITA KOTHARI, MUMBAI

In the result, all appeals filed by the Revenue stands dismissed

Bench: Smt. Beena Pillai () & Shri Omkareshwar Chidara ()

necessary to consider the intent of the legislation with respect to loss incurred in case of issue of dividend as considered in section 94(7) of the Act. The memorandum notes for bringing out the said section into statute as published in the CBDT Circular No.14/2001, the relevant extracts (Para ... held as non genuine merely because of issue of dividend by the JM Financial fund if the holding period is not covered by section 94(7). Coming to the validity of the assessee’s claim regarding the short-term capital loss/profit, it is noted that the appellant had made

DCIT, MUMBAI vs. LALITA KOTHARI, MUMBAI

In the result, all appeals filed by the Revenue stands dismissed

Bench: Smt. Beena Pillai () & Shri Omkareshwar Chidara ()

necessary to consider the intent of the legislation with respect to loss incurred in case of issue of dividend as considered in section 94(7) of the Act. The memorandum notes for bringing out the said section into statute as published in the CBDT Circular No.14/2001, the relevant extracts (Para ... held as non genuine merely because of issue of dividend by the JM Financial fund if the holding period is not covered by section 94(7). Coming to the validity of the assessee’s claim regarding the short-term capital loss/profit, it is noted that the appellant had made

DCIT, MUMBAI vs. ANITA KOTHARI, MUMBAI

In the result, all appeals filed by the Revenue stands dismissed

Bench: Smt. Beena Pillai () & Shri Omkareshwar Chidara ()

necessary to consider the intent of the legislation with respect to loss incurred in case of issue of dividend as considered in section 94(7) of the Act. The memorandum notes for bringing out the said section into statute as published in the CBDT Circular No.14/2001, the relevant extracts (Para ... held as non genuine merely because of issue of dividend by the JM Financial fund if the holding period is not covered by section 94(7). Coming to the validity of the assessee’s claim regarding the short-term capital loss/profit, it is noted that the appellant had made

DCIT, MUMBAI vs. 2015 GROVER FAMILY TRUST, MUMBAI

In the result, both the appeals of the Revenue are dismissed

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)

distributors/NHIs/Big Corporates with the plan of providing fictitious STCL and distributing dividend (exempt from täxation) which would not fall within the purview of section 94(7) of the IT Act. iv. The target Investors are about the modus operandi and the possible tax benefit that they would avall by subscribing ... time. Dividend is distributed just after 3 months and few days from the last date of investment. This ensures that the provisions of section 94(7) were not applicable to the investors. vii. The new investors infuse money into this scheme, as per their requirements to ensure that they

DCIT, MUMBAI vs. CMS COMPUTERS LIMITED , MUMBAI

In the result, both the appeals of the Revenue are dismissed

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)

distributors/NHIs/Big Corporates with the plan of providing fictitious STCL and distributing dividend (exempt from täxation) which would not fall within the purview of section 94(7) of the IT Act. iv. The target Investors are about the modus operandi and the possible tax benefit that they would avall by subscribing ... time. Dividend is distributed just after 3 months and few days from the last date of investment. This ensures that the provisions of section 94(7) were not applicable to the investors. vii. The new investors infuse money into this scheme, as per their requirements to ensure that they

ACIT CENTAL CIRCLE 8(2) MUMBAI, MUMBAI vs. SUBHKAM VENTURES (I) PRIVATE LIMITED, MUMBAI

Appeals of the revenue are dismissed and the C

Bench: Shri Anikesh Banerjee, Jm & Ms Padmavathy S, Am

incurred of Rs. 61,96,50,080/-by the Assessee on the sale of mutual funds, invoking the provisions of dividend stripping under Section 94(7) of the Income Tax Act?" 4 ITA 5657/M/24-CO 276/ M/ 24-ITA 5620/ M/24 -CO 277M/ 24- ITA 5622/M/24- Subhkam Ventures