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2019 (8) TMI 1059 - AT - Income TaxDisallowance of business loss - sale of shares of Comfort Fincap Ltd. - bogus loss - HELD THAT:- Assessee has purchased and sold shares through recognized broker. Copies of Contract notes, copies of payment through banks, De-mat statement and other evidences were filed in support of the genuineness of the transactions AO has disallowed the claim of assessee on the sole reason that this scrip was suspended by Calcutta Stock Exchange from April, 2013 onwards. However, it has been brought on record by the assessee to demonstrate that the scrip is being traded even today. Moreover, from the contract note placed at Page 34-36 PB it is noted that the transaction took place at Bombay Stock Exchange and not at Calcutta Stock Exchange. So the foundation of the reason given by the AO is based on wrong assumption of fact and so is erroneous. Thus, the basis on which the Assessing Officer has made the disallowance, cannot be upheld. CIT(A) relied on the so-called rules of suspicious transactions and confirmed the order of the Assessing Officer. In my view, such disallowance cannot be sustained. Thus delete this addition as the entire addition was made on wrong assumption of fact - Decided in favour of assessee.
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