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2023 (10) TMI 1228 - AT - Income TaxBogus share capital gain/loss - unusual hike in the price of ‘Banas’ not backed by fundamentals - HED THAT:- As decided in PCIT, Mumbai Vs. Indravandan Jain HUF [2023 (7) TMI 1091 - BOMBAY HIGH COURT] shares were purchased by respondent on the floor of Stock Exchange and not from the broker, deliveries were taken, contract notes were issued and shares were also sold on the floor of Stock Exchange. As in the present case the documents clearly establish that the shares were purchased on the floor of stock-exchange (not from broker); the contract note of purchase was issued; shares were sold on the floor of stock exchange; contract note of sale was issued; the deliveries were taken into and given from De-mat A/c within normal time; the payment and receipt of considerations were made through bank a/c (not in cash). Therefore, the transactions are well-explained with the support of all documentary evidences and there is no infirmity or fallacy at any stage of transactions. Thus AO is not justified to disallow the short-term loss declared by assessee. Decided in favour of assessee.
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