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2014 (3) TMI 642 - ITAT DELHIDisallowance of capital loss – Revenue was of the view that the transaction is a sham to book an artificial loss – Held that:- The AO has rejected the assessee's claim of loss in share transactions by merely holding that assessee's reply in this regard was not satisfactory - He has not spelt out what was not satisfactory in the assessee's reply - AO has not brought out that the sale price recovered in this regard was not proper - No reasonable cause has been attributed whatsoever for holding that the transaction was not satisfactory - CIT(A) has also affirmed the AO's action without any basis. Nothing has been brought on record to show the share transaction was the sham. Just because the transaction is between the relatives, it cannot be said to be a sham - The decision in Ashwani Khurana vs. ACIT [2014 (3) TMI 625 - ITAT DELHI] followed - no reason is given either by the AO or by the CIT(A) and except the bald statement, no evidence is produced to point out that the market value of the assets was much more than what is shown in the balance sheet – thus, the order of the CIT(A) set aside – Decided in favour of Assessee.
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