https://www.taxtmi.com/caselaws?id=460722 A share transaction structured to create an artificial short-term capital loss for set-off against capital gains may be disregarded where surrounding circumstances show it is not a genuine commercial arrangement. The test of human probabilities can be applied to examine the real nature of the transaction, including common control over the entities and the timing of the purchase and sale. On the facts, the loss was treated as arising from a colourable device and sham transaction, so the disallowance of the short-term capital loss was upheld. en-us Thu, 10 Aug 2017 00:00:00 +0530 Wed, 12 Feb 2025 19:00:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=460722 A share transaction structured to create an artificial short-term capital loss for set-off against capital gains may be disregarded where surrounding circumstances show it is not a genuine commercial arrangement. The test of human probabilities can be applied to examine the real nature of the transaction, including common control over the entities and the timing of the purchase and sale. On the facts, the loss was treated as arising from a colourable device and sham transaction, so the disallowance of the short-term capital loss was upheld. Case-Laws Income Tax Thu, 10 Aug 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=460722