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2013 (4) TMI 91 - ITAT AHMEDABADLoss on sale of shares of Divis Labs Ltd - speculation loss v/s contrived loss Held that:- The factual position that emerges is that the assessee had entered into transactions of purchase and sale of shares of Divis Labs Ltd., a company listed on the stock exchange. The transactions of sales were entered before the corresponding purchase transactions and without any existing stock being available with assessee. CIT (A) has observed that the activity of first selling and then purchasing the shares to be a permissible and normal business activity in share transactions, further the purchase and sell of shares were evidenced by purchase and sales bills which were produced during the assessment proceedings. The shares were sold first with the intention to purchase the same when its prices fell down but since the price of shares increased, the assessee had to purchase the shares to minimize the loss. In view of these facts, the CIT (A) has held the loss of Rs.31,39,183/- to be a speculation loss and not a contrived loss. These facts have not been controverted by Revenue by bringing any material on record - no reason to interfere with the order of CIT (A) - against revenue. Addition on Profit on sale of shares of TV Today - CIT(A) deleted the addition - Held that:- CIT (A) has given a finding that the purchase of 8200 shares of TV Today was accounted in the individual account of Hasmukh Vora, the payment of shares have been made from the account of Hasmukh Vora and the same is also reflected in the return of income of Hasmukh Vora for A.Y. 2004-05 in his individual capacity. These facts have not been controverted by Revenue by bringing any contrary material on record. Thus no reason to interfere with the order of CIT (A). Thus this ground of the Revenue is dismissed.
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