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2012 (10) TMI 753 - AT - Income TaxCapital Gain - genuine transaction of purchase and sale - AO was of the view that the entire transaction was a sham & circular transaction. - Held that:- The only aspect, which is material and affecting the interest of the parties, is the purchase price at which the assessee purchased the shares. The inflated price paid by the assessee over and about the market price of the shares is only to assist and help the group concern and not for any wise investment based on a prudent business decision. The entire chain of events clearly established that the assessee has purposefully purchased the shares at a higher price than the market rate available on the date of purchase and thereafter sold the shares by incurring loss. The purpose and intention behind these transactions is so apparent and obvious that what is shown by the parties is not the real. The facts and circumstances as well as the relevant material can lead to only one conclusion that all these exercise of purchase of sharers was meant to assist the group company in order to satisfy the conditions for availing the finance from the ICICI Ltd. - decides in favour of revenue
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