https://www.taxtmi.com/caselaws?id=20236 The court held that the transfer of shares was a sham transaction designed to create a paper loss for tax purposes, ruling in favor of the Revenue. The market price of the shares was determined to be higher than initially assessed, and interest paid on borrowed funds for share acquisition was not allowed to be capitalized but treated as a deduction. The short-term capital loss on the sale of shares was disallowed as it was deemed a paper loss from the sham transaction. The court refrained from ruling on the validity of the pre-incorporation share sale. en-us Fri, 05 Mar 1993 00:00:00 +0530 Thu, 12 Nov 2009 16:35:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20236 The court held that the transfer of shares was a sham transaction designed to create a paper loss for tax purposes, ruling in favor of the Revenue. The market price of the shares was determined to be higher than initially assessed, and interest paid on borrowed funds for share acquisition was not allowed to be capitalized but treated as a deduction. The short-term capital loss on the sale of shares was disallowed as it was deemed a paper loss from the sham transaction. The court refrained from ruling on the validity of the pre-incorporation share sale. Case-Laws Income Tax Fri, 05 Mar 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20236