https://www.taxtmi.com/caselaws?id=395652 Business loss from trading in design fabric was found genuine and allowable where the assessee produced invoices, ledger confirmations and section 133(6) replies, and the parties' statements supported the existence of purchase orders and their later cancellation. The tax authorities' reliance on surrounding circumstances, including absence of litigation, similar correspondence and lack of security, was insufficient on its own to displace the supporting evidence. The loss was not treated as fictitious merely because the transactions were oral or the venture was short-lived, and the record did not establish that the loss was sham or fabricated. en-us Fri, 29 May 2020 00:00:00 +0530 Mon, 24 Aug 2020 10:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=395652 Business loss from trading in design fabric was found genuine and allowable where the assessee produced invoices, ledger confirmations and section 133(6) replies, and the parties' statements supported the existence of purchase orders and their later cancellation. The tax authorities' reliance on surrounding circumstances, including absence of litigation, similar correspondence and lack of security, was insufficient on its own to displace the supporting evidence. The loss was not treated as fictitious merely because the transactions were oral or the venture was short-lived, and the record did not establish that the loss was sham or fabricated. Case-Laws Income Tax Fri, 29 May 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=395652