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2019 (2) TMI 1683 - AT - Income TaxBogus loss from client code modification (CCM) and stage- managing - HELD THAT:- As decided in M/S RATNABALI COMMODIT IES PVT. LTD. VERSUS INCOME TAX OFFICER, WARD-12 (3) , KOLKATA [2017 (6) TMI 1211 - ITAT KOLKATA] in order to find out whether the transaction is genuine or ingenuine, it is neither the expedience or correctness of the decision nor the business expertise of the person to be considered. It is to be considered on the basis of the materials that there was no such transaction and that these share transactions were paper transactions. The suffering of loss could not be a factor for such purpose. Having regard to the facts and circumstances of the case, the view taken by the Tribunal allowing share loss cannot be said to be erroneous or perverse. CasesCIT vs. Emerald Commercial Ltd. & Anr. [2001 (3) TMI 67 - CALCUTTA HIGH COURT], CIT vs. Dhawan Investment & Trading Co. Ltd. [1998 (3) TMI 76 - CALCUTTA HIGH COURT] and CIT vs. Currency Investment Co. Ltd. [1999 (6) TMI 12 - CALCUTTA HIGH COURT] relied on. Respectfully following the same, we hold that the impugned loss claimed by assessee is genuine loss in the above facts and circumstances of the case and therefore eligible for deduction. Accordingly, AO is directed. This ground of assessee's appeal is allowed. As we put up a specific query to the department as to whether assessee’s broker carried out the relevant client code modification as per prescribed rules or not. There is no such violation pointed out during the course of hearing before me. Therefore, adopt the above detailed discussion mutatis mutandis to delete the impugned addition - Decided in favour of assessee.
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