Set-off of capital losses cannot be denied as bogus without specific adverse evidence of accommodation entries.

A claim for set-off of capital losses against capital gains cannot be rejected as non-genuine merely because the figures nearly neutralise each other in quantum. The tax authorities must rely on specific adverse material showing that the transactions are accommodation entries or otherwise bogus; bare suspicion based on matching amounts is insufficient. On the facts noted, no concrete evidence supported the allegation of non-genuineness, so the disallowance of the set-off was deleted and the assessee's claim was accepted.

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Issues: Whether the disallowance of the assessee's claim for set-off of capital losses against capital gains, made on the premise that the transactions were non-genuine and accommodation entries, was sustainable.

Analysis: The lower authorities had denied the set-off primarily because the gain and loss figures were nearly offsetting, without identifying any specific material to support a finding that the claim was bogus. Mere reliance on the quantum of the claim, without concrete adverse evidence, was held insufficient to reject the set-off as non-genuine.

Conclusion: The disallowance of the set-off of loss was deleted and the claim was accepted in favour of the assessee.

Ratio Decidendi: A claim for set-off cannot be rejected as non-genuine merely because the figures appear to neutralise each other in quantum, unless supported by specific adverse material showing that the transactions are accommodation entries or otherwise bogus.

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