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2018 (10) TMI 675 - ITAT KOLKATASetoff of short term loss from shares with short term capital gain - Genuineness of loss - share belonging to the RPG group to which the assessee belonged. - revenue claimed that, even though the purchase and sale of investments were carried out within a very short span of time, proper explanation was not furnished by the assessee company as to why there was such difference between the purchase price and sale price. Held that:- It was not a case where profits were earned by the assessee in respect of transaction with third parties and thereafter, the loss was artificially created to be set off against such income which is a distinguishing factor. The present case both profit and loss have arisen only from the intra group transactions and, therefore, the AO could not have on one hand accepted the genuineness of the transaction which resulted in gain, but on other hand doubted the genuineness only where the transaction resulted in loss, which action of AO cannot be countenanced because AO being a quasi-judicial authority has to be fair and reasonable. - Set off allowed - Decided against the revenue.
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