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2020 (2) TMI 1712 - AT - Income TaxIngenuine Loss in client code modification in F&O account - whether there is no indication in the lower authorities’ orders as to whether that the assessee’s demat account in any way involved such a client code modification or not? - HELD THAT:- As decided in Kundan Investment Ltd. [2003 (3) TMI 62 - CALCUTTA HIGH COURT] all the shares related to the reputed companies and were quoted shares in the stock exchanges and were purchased and sold at the prevalent quoted market rates, which was verified from the statement of the slack exchanges. On these basis, the Tribunal found that the CIT(A) had proceeded on the basis of suspicion that there might be some ingenuinity in the transactions. On the basis of the materials produced, the Tribunal came to a finding of fact, which does not seem to be perverse. Whether the shares could be sold immediately on the date of purchase or not was a question of business expedience. Whether the decision was correct or wrong cannot the question, which can be a subject-matter of decision in such a case. In order to find out whether the transaction is genuine or in genuine it is neither the expedience nor 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. Thus we direct the Assessing Officer to delete the addition in question - Decided in favour of assessee.
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