https://www.taxtmi.com/caselaws?id=757340 ITAT Mumbai held that assessee's off-market sale of shares to partnership firm constituted a colorable device for tax evasion. The transaction artificially created long-term capital loss while maintaining effective control over securities and consideration. The arrangement lacked commercial substance and was designed primarily for tax avoidance, allowing assessee to claim exemption under Section 10(38) while creating artificial losses for set-off. ITAT upheld AO's decision, setting aside CIT(A)'s order, following McDowell and Vodafone precedents on impermissible tax avoidance arrangements. en-us Tue, 06 Aug 2024 00:00:00 +0530 Thu, 22 Aug 2024 10:27:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=757340 ITAT Mumbai held that assessee's off-market sale of shares to partnership firm constituted a colorable device for tax evasion. The transaction artificially created long-term capital loss while maintaining effective control over securities and consideration. The arrangement lacked commercial substance and was designed primarily for tax avoidance, allowing assessee to claim exemption under Section 10(38) while creating artificial losses for set-off. ITAT upheld AO's decision, setting aside CIT(A)'s order, following McDowell and Vodafone precedents on impermissible tax avoidance arrangements. Case-Laws Income Tax Tue, 06 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=757340