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2017 (3) TMI 200 - AT - Income TaxShort term capital loss - whether a sham transaction or speculative in nature - all these transactions were executed “off market” and not through recognized Stock Exchange. - transactions with related parties - Held that:- Respectfully following the judgment in the case of ACIT v. Biraj Investment Pvt. Ltd. (2012 (8) TMI 805 - GUJARAT HIGH COURT ) and Hasmukh M. Patel vs. ACIT (2011 (4) TMI 643 - ITAT, AHMEDABAD) we are of the view that assessee has rightly claimed short term capital loss which is eligible to be set off against long term capital gain and the impugned transaction is neither “sham” nor speculative in nature - Decided in favour of assessee Disallowance of interest paid on unsecured loan - Allowance of interest expense as against interest free advance to group company - Held that:- Assessing Officer has made an estimated addition without proving the nexus between the interest bearing funds and interest free advances whereas assessee had sufficiently demonstrated to have enough interest free reserve and surplus and interest free unsecured loan to cover up the interest free advances along with order of Hon. Gujarat High Court about merger of assessee with Suraj Stainless Ltd. to whom interest free advances were given. We, therefore, set aside the order of ld. CIT(A) and allow this ground of assessee.- Decided in favour of assessee Rent Exp. Of Mumbai Office - treated as Business expenses - Held that:- There is fair possibility of situation when a company plans its future business trend and may have to explore various avenues with relation thereto. It seems that assessee with the fore-sightedness and in order to improve and expand business and also to save extra hotel charges thought it amicable to take flats on lease in Mumbai. In the given facts and circumstances of the case and in absence of any contrary reasons brought on record by the Revenue against the impugned expenditure booked by the assessee except a casual approach, we are inclined to believe that assessee has claimed genuine expenditure of rent. We set aside the order of ld. CIT(A) and allow this ground. - Decided in favour of assessee
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