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2018 (8) TMI 1487 - AT - Income TaxDisallowance of assessee’s claim of long term capital loss - as per AO purchase and sale of shares was nothing but a colourable device to generate loss to be set off against capital gain - Held that:- The same property was the subject matter of two distinct transactions – one with QIPL and the other with CRPL, though ultimately the property was sold to QIPL. This means that when the assessee received part consideration from QIPL, it was well aware that the transaction is going to result into capital gains and to avoid such capital gains liability the assessee used CRPL and VBPL as conduits to generate loss in shares to be set off against the capital gain. Thus, the surrounding circumstances and human probabilities are to be taken into account while considering the evidences emanating from the records. Considering the sequence of events discussed the share transaction is nothing but a sham transaction, a colourable device to avoid capital gains tax liability and, therefore, has to be ignored. The first appellate authority has accepted the transaction without considering the fact that what is ‘apparent’ is not ‘real’ on the facts of the case in hand. We, therefore, set aside the findings of the CIT(A) and restore that of the AO. The assessment order is upheld. The sole ground raised by the Revenue is allowed.
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