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TMI Blog2015 (9) TMI 646X X X X Extracts X X X X X X X X Extracts X X X X ..... rfuges. In view of the above discussions, and bearing in mind entirety of the case, we uphold the grievance of the assessee. Accordingly, the Assessing Officer is directed to delete the disallowance on account of sale of shares. The assessee gets the relief accordingly. - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... 77; 90/- per share or shares value of ₹ 8.89/- sold in ₹ 5/- and incurred loss of ₹ 3.89/- per share. In this case the shares of Swastika Coal Corporation were purchased at ₹ 8.89/- and the said share sold at ₹ 5/- per share and incurred the loss of ₹ 3.89/- per share. Similarly, the shares of Subala Trading Company was purchased at ₹ 100/-per share and the said shares were sold at ₹ 10/- per share and incurred loss of ₹ 90 per share. Assessee failed to justify how it has booked losses in the sale transactions of shares of Swastika Coal Corporation & Subala Trading Company. Considering the above stated facts, it is very clear that the assessee has manipulated the sale price of the shares ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 50,000/-." 4. The Assessing Officer also held that the above loss is speculative loss in nature, as Explanation to Section 73 is invoked on the facts of this case. However, we need not really deal with that aspect of the matter as learned CIT(A) has deleted that issue in favour of the assessee, and the Assessing Officer is not in appeal against that decision. We leave it that. 5. Aggrieved by the disallowance of loss on sale of shares, assessee carried the matter in appeal before the CIT(A) but without any success. While rejecting the grievance of the assessee, learned CIT(A) observed as follows: "Second ground of appeal is now taken up. Appellant's ground of appeal that AO made addition of ₹ 9,96,875/- by alleging it to be sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duly considered facts of the case in the light of the applicable legal position. 8. We have noted that as held by Hon'ble Karnataka High Court in the case of A Khadar Basha vs. ACIT [(2015) 58 taxmann.332 (Kar)], merely because an assessee sells something at a price less than it's purchase price, genuineness of loss on sale cannot be rejected. Of course, in the case of transactions between related parties, the provisions of Section 40A(2), as noted by their Lordships in this case as well, will be attracted but that is not the situation that we are dealing with. We have also noted that the shares sold by the assessee are unquoted shares and, therefore, there cannot be any standard sale prices in respect of the same. The prices at which suc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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