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2009 (8) TMI 93 - HC - Income TaxLoss of sale of shares – expenditure on acquisition of shares – business profit – held that - purchase of shares by the assessee-company on April 4, 1995, at a price of Rs. 220 per share against the market price of Rs. 70 per share was definitely not either as a normal business transaction of the assessee nor for any exigency of the business requirement of the assessee-company - need of the individual directors cannot be elevated to the status of the need of the company - an acquisition of share, at a value far higher than the market value when the shares otherwise were available at Rs. 70 per share, but paying Rs. 220 per share to purchase them only from a particular seller cannot be construed as any part of the business transaction – loss on sale of shares is not a business loss – it is short term capital loss – The issue that whether interest on amount borrowed for the purpose of acquisition of shares is allowed as deduction or not, matter remanded to AO
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