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2017 (9) TMI 1773 - AT - Income TaxDisallowance of short term capital loss - purchase of shares - addition on reliance on the statement given by Shri Mukesh Choksi - Held that:- The sale consideration has been received through banking channels, meaning thereby, the genuineness of receipt of sale consideration also stands proved. It is not the case of the AO that the price of purchase/sales was not in tune with market rates. The assessee has furnished evidences to support the claim of purchase and sales in the form of broker notes, the bank statements and de-mat statements. In my view, these documents sufficiently prove the genuineness of purchase and sale of shares. The tax authorities have simply placed reliance on the statement given by Shri Mukesh Choksi. When the documentary evidences, that too external evidence, support the case of the assessee, I find no reason in placing reliance solely on the general statement given by Shri Mukesh Choksi. The cancellation of registration of the broker license of M/s Alliance Intermediary, in my view, would not nullify the evidences furnished by the assessee, since the payments and delivery of shares have been proved. As contended by Ld A.R, the assessing officer has not brought any material on record to disprove the evidences furnished by the assessee. There is no reason to suspect the genuineness of purchase and sale transactions of shares. Accordingly set aside the order passed by CIT(A) and direct the AO to allow the impugned claim of short term capital loss. - Decided in favour of assessee.
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