9911796707
TMI Blog2016 (9) TMI 1152X X X X Extracts X X X X X X X X Extracts X X X X ..... See Commissioner of Income Tax vs. Korlay Trading Co. Ltd. [1998 (2) TMI 104 - CALCUTTA High Court] In the instant case, ld. DR has not brought any defect with respect to the transactions of the sale & purchase of the shares but just mentioned that the broker through whom the transactions were made was suspended. We also find that the broker was not suspended during the period, when the transactions for sale & purchase of the shares taken place. The ld. DR has also not brought on record the reasons for which the broker was suspended. In view of above, we are inclined to reverse the order of authorities below - Decided in favour of assessee. - ITA No.935/Kol /2012 - - - Dated:- 12-8-2016 - Shri Waseem Ahmed, Accountant Member and Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssociation Ltd has confirm the trade detail executed by broker in the script by which short term capital loss arise which is totally unjustified and it should not be sustained. 5. That leave may be granted to add, to alter modify or amend ground or grounds of appeal during the hearing of appeal. Shri V.N. Datta, Ld. Authorized Representative appeared on behalf of assessee and Shri Sallong Yaden, Ld. Departmental Representative appeared on behalf of Revenue. 2. Only inter-connected issue in this appeal is that Ld. CIT(A) erred in confirming the action of Assessing Officer by treating the short term capital loss of ₹56,81,304/- as bogus loss. 3. Facts in brief are that assessee in the present case is a Private Limited Comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nge (KSE for short) by the AO for verification but KSE was not able to provide the name and address of the seller/ purchaser of such shares. From the detailed, it was observed that the broker M/s Rajendra Prasad Shah, created the loss for the assessee by furnishing purchase and sales bills with a view to provide the loss to assessee. Accordingly, AO observed that the loss claimed by assessee for ₹ 56,81,304/- in the sale-purchase of share of the aforesaid companies are nothing but a bogus short term capital loss which cannot be allowed to the carried forward. Thus, the loss claimed by assessee was disallowed. 5. Aggrieved, assessee preferred an appeal before Ld. CIT(A) whereas assessee submitted that : (i) The Kolkata Stock Exch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that there was a sharp decline in the price of the companies. Although, the SENSEX was gaining ratio growth. Accordingly, Ld. CIT(A) found that modus operandi adopted by assessee is to avoid taxes being non-genuine circumstances and it was nothing but a colorable device to avoid tax and he upheld the action of AO. Being aggrieved by this order of Ld. CIT(A) assessee came in second appeal before us. 6. Before us Ld. AR submitted paper book which is running pages from 1 to 63 and stated that SEBI has suspended the broker, M/s Rajendra Prasad Shah on account of some other reasons and the transactions made by assessee was before the date of suspension of said M/s Rajendra Prasad Shah by the KSE. The ld. AR drew our attention on pages 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urchased, date of sale, amount of purchase and sale money, etc. discharged its initial burden-Merely because broker through whom transaction was made failed to produce his books does not mean that transaction was not genuine- No investigation made by ITO to bring on record any material to disbelieve the claim of assessee-Transaction is proved-Finding of Tribunal is based on material and cannot be said to be perverse-Claim for loss was allowable In the instant case, ld. DR has not brought any defect with respect to the transactions of the sale purchase of the shares but just mentioned that the broker through whom the transactions were made was suspended. We also find that the broker was not suspended during the period, when the trans ..... X X X X Extracts X X X X X X X X Extracts X X X X
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