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TMI Blog2014 (3) TMI 642X X X X Extracts X X X X X X X X Extracts X X X X ..... on was the sham. Just because the transaction is between the relatives, it cannot be said to be a sham - The decision in Ashwani Khurana vs. ACIT [2014 (3) TMI 625 - ITAT DELHI] followed - no reason is given either by the AO or by the CIT(A) and except the bald statement, no evidence is produced to point out that the market value of the assets was much more than what is shown in the balance sheet – thus, the order of the CIT(A) set aside – Decided in favour of Assessee. - ITA No. 1747/Del/2012 - - - Dated:- 14-3-2014 - Shri R. P. Tolani And Shri Shamim Yahya,JJ. For the Petitioner : Sh. A. K. Khurana, CA For the Respondent : Sh. Vivek Wadekar, CIT(DR) ORDER Per Shamim Yahya: AM This appeal by the Assessee is di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed and added back to the income of the assessee. 4. Upon assessee's appeal in this regard, Ld. CIT(A) held that it is apparent that this transaction is a sham to book an artificial loss. Accordingly, Ld. CIT(A) affirmed the AO's action. 5. Against the above order the Assessee is in appeal before us. 6. We have heard both the counsel and perused the records. We find that the AO has rejected the assessee's claim of loss in share transactions by merely holding that assessee's reply in this regard was not satisfactory. He has not spelt out what was not satisfactory in the assessee's reply. Assessee has sold shares. AO has not brought out that the sale price recovered in this regard was not proper. No reasonable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transaction of sale of shares is a sham transaction. However, we do not find any evidence or basis for holding the sale of shares to assessee's wife as sham transaction. Merely because the transaction is between the relatives, it, per se, cannot be said to be sham or bogus transaction. At the time of hearing before us, it is stated by the Ld. CIT(A) that the company M/s Karma Lakelands Pvt. Ltd. has substantial agricultural land, its value has increased manifolds and, therefore, the sale of shares at book value is not correct. However, we find that no such reason is given either by the AO or by the CIT(A) and except the bald statement, no evidence is produced to point out that the market value of the assets was much more than what is s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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