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October 2025

General Anti-Avoidance Rules — Scope of —Impermissible Avoidance Agreement — Purchase and sale of shares — Cumulative effect of purchase and sale of shares results in loss — No strong material established by the Department to show applicability of s. 96(1) except the timing of transaction — GAAR provisions not applicable — Order passed u/s. 144BA(6) set-aside.

By Keshav Bhujle | Ritu Punjabi, Advocates
Reading Time 5 mins

39. (2025) 177 taxmann.com 726 (Telangana)

Smt. Anvida Bundi vs. DCIT

A. Y. 2020-21 Date of order 22/08/2025

Ss. 96 r.w.s 144BA of ITA 1961

General Anti-Avoidance Rules — Scope of —Impermissible Avoidance Agreement — Purchase and sale of shares — Cumulative effect of purchase and sale of shares results in loss — No strong material established by the Department to show applicability of s. 96(1) except the timing of transaction — GAAR provisions not applicable — Order passed u/s. 144BA(6) set-aside.

The Assessee, an individual, held investments in shares and securities. During the year, the assessee sold certain shares (already held by her) and earned long term capital gains of about ₹44.14 crores from sale of shares. In order to deploy the funds available from sale of shares, and keeping in mind the market trend, the assessee purchased shares of HCL Technologies Pvt. Ltd. to earn short-term capital gains and thereafter to make long-term capital gains from subsequent disposal of investment. The assessee also invested in the units of mutual fund worth ₹32.92 crores during the year. Subsequently, the assessee sold shares of HCL Technologies Pvt. Ltd. in the same yea

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