Supreme Court upheld Dividend-Stripping Law

 Supreme Court upheld Dividend-Stripping Law in the case of Wall fort Shares & Stock Brokers CIT Vs. Walfort Share & Stock Brokers (Supreme Court)-A Five Member Special Bench of the Tribunal (96 ITD 1 (Mum) (SB)) and the Bombay High Court (310 ITR 421 (Bom)) held that the ‘loss’ incurred by an assessee in ‘dividend-stripping’ transactions cannot be disallowed on the ground that it was ‘tax-planning‘. In respect of AY 2000- 01, the assessee bought units of a mutual fund on 24.3.2000 (the record date) for Rs. 17.23 each and immediately became entitled to receive dividend of ...