I want to get rid of the border in my dialog box and make it look absolutly transparent, as if the image is on the top of screen.
The simplest way of doing this is that in your DialogFragment's onCreate() method, call
setStyle(DialogFragment.STYLE_NO_FRAME, 0);
And if the view you returned in onCreateView does not have a background specified, the dialog's background will be just transparent.
Why? DialogFragment.STYLE_NO_FRAME means that OS will not do any drawing in the window of the dialog, and your view is 100% responsible for drawing everything about the dialog.