https://www.taxtmi.com/caselaws?id=378939 Genuine share-loss claims are allowable where the transaction is supported by commercial reality, but they are disallowed if the surrounding facts show a lack of genuineness. On Vadhivare Specialty Chemicals Ltd. shares, the inflated subscription price, immediate bonus issue, sale to a related person, and absence of business justification showed no commercial basis, so the short-term capital loss and set-off were rejected. On Pentagon Manufacturing and Marketing Ltd. shares, the Revenue did not disprove the declared sale price or the legal form of the transaction, and the long-term capital loss was allowed as legitimate tax planning. The Reliance Industries Ltd. share loss was also allowed because the market transaction was not shown to be sham. en-us Mon, 22 Apr 2019 00:00:00 +0530 Tue, 23 Apr 2019 15:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=378939 Genuine share-loss claims are allowable where the transaction is supported by commercial reality, but they are disallowed if the surrounding facts show a lack of genuineness. On Vadhivare Specialty Chemicals Ltd. shares, the inflated subscription price, immediate bonus issue, sale to a related person, and absence of business justification showed no commercial basis, so the short-term capital loss and set-off were rejected. On Pentagon Manufacturing and Marketing Ltd. shares, the Revenue did not disprove the declared sale price or the legal form of the transaction, and the long-term capital loss was allowed as legitimate tax planning. The Reliance Industries Ltd. share loss was also allowed because the market transaction was not shown to be sham. Case-Laws Income Tax Mon, 22 Apr 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=378939