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2016 (2) TMI 499 - ITAT DELHIDisallowance of short term capital loss on sale of shares - whether entire transaction was sham and arranged with a view to book an artificial loss when in fact the transactions of purchase as also the sale have been carried out at the prevailing market rates by actual payment / receipt of funds Held that:- The assessee had no bonafide reason or cause in September, 2008 which forced the assessee to sale shares during the lock-in period which resulted into huge loss to the assessee. In this situation, we are also inclined to agree with the conclusion of the authorities below that sale of share was effected between two group companies having the same directors about the shares of the group company during the lock-in period wherein the transactions of sale and purchase of these shares were expressly prohibited by the allotting authority during lockin period which was to be expired on 30.03.2009. There was no good cause for the assessee to sale these shares back to HPC group company which was purchased from HPC and thus, we have hasitation to hold that the transaction of sale of shares under taken by the assessee company during the relevant financial period, with group company was a sham transaction and the loss booked under said transaction cannot be held as allowable claim of short term capital loss for the assessee. Finally, we uphold the impugned order which confirm the disallowance and addition made by the AO. - Decided against assessee Disallowance u/s 14A - Held that:- When we analyse the facts and circumstances of the present case, admittedly and undisputedly, the assessee has not claimed any exempt income for AY 2009-10, thus, in the view of dicta laid down by Hon’ble Jurisdictional High Court of Delhi in the case of Holcim India (supra) we hold that there could be not disallowance u/s 14A read with rule 8D of the Act and respectfully following the same the issue is decided in favour of the assessee
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