Mutual fund’s loss allow or disallow after dividend recieved

Whether assessee was entitled to claim deduction of loss incurred on sale of units
of mutual fund purchased by the assessee for two days to get the benefit of the
dividend income under section 10(33)?
Vaneet Jain v. CIT, Panchkula (2007) 158 Taxman 410 (Punj. & Har.) 13
Relevant section: 28(i)
“The assessee had made investment for the purchase of units of mutual fund for Rs. 5
lakhs along with the right to receive dividend. After two days of purchase of units of
mutual fund the assessee received dividend and later on after three days he sold the
units in loss. The assessee claimed the deduction in respect of loss incurred due to sale
of such units. The High Court held that the investment made by the assessee in the units
of mutual fund were merely to get the benefit of the dividend income under section 10(33)
and the assessee was not otherwise engaged in the said business. Therefore, disallow
the assessee’s claim.”

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