The assessee, a professional stock broker, claimed loss on trading of shares which was disallowed by the...

The assessee, a professional stock broker, claimed loss on trading of shares which was disallowed by the Assessing Officer (AO) on the grounds that the trades were not genuine business transactions, but part of accommodation entries to manipulate share prices. The Tribunal upheld the disallowance, observing that the assessee invested in shares of three companies with no financial standing, deliberately sold those shares incurring losses, and failed to provide any explanation for such transactions. The modus operandi unearthed by tax authorities, the assessee's knowledge as a stock broker, and involvement of penny stock companies pointed towards systematic booking of bogus losses. Relying on a precedent case, the Tribunal held that the asses..... .....

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