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2013 (10) TMI 1037 - HC - Income Tax
Loss of sale of shares (long term loss) - set off with the long term capital gains - genuineness of transaction - As per AO sale was a colourable transaction considering the fact that the assessee purchased the selfsame scrip after some time and the sale to the group company was financed by the assessee himself - Strong suspicion to replace the evidence – Held that:- On the basis of a suspicion howsoever strong it is not possible to record any finding of fact. As a matter of fact, suspicion can never take the place of proof - The finding arrived at by the Tribunal was not even alleged by Mr. Dutta to have not been based on evidence. In the teeth of the aforesaid findings made by the Tribunal on the basis of evidence, it is difficult, if not impossible, to hold that the transaction of buying and selling of shares of Hindustan Development Corporation Ltd. was a colourable transaction or was resorted to with any ulterior motive of reducing the tax payable for long term capital gain – Decided against the Revenue.
Decision in the case of CIT vs. Shekhawati Rajputana Trading Co. (P) Ltd. [1998 (4) TMI 106 - CALCUTTA High Court] distinguished.