Section 115JB Doesn’t Envisage Enhancement of Taxable Profits by Adding Loss incurred in Redemption of MF

Hespera Realty Pvt. Ltd. Vs DCIT (ITAT Delhi) The issue under consideration is whether upward adjustment to book profit under section 115JB of the Act, by treating the loss on purchase and redemption of mutual funds as expenditure relatable to earning exempt income is justified in law? ITAT states that, straight reading of the provisions denotes that the loss on purchase and redemption of mutual funds cannot be treated as an expenditure relatable to earning of dividend. The provisions relating to dividends stripping and allowability of consequent loss u/s 94(7) are different from the Clause (f...