https://www.taxtmi.com/caselaws?id=800892 Share-trade disallowances founded on alleged accommodation entries are unsustainable where contract notes, demat delivery records, securities transaction tax payments and banking-channel transactions establish ordinary-course trades, with no material linking the taxpayer to accommodation entries. Under section 145(2) and ICDS-VIII, an approved demerger requires the original acquisition cost of shares to be apportioned between retained shares and securities allotted by resulting companies. Closing stock may therefore be valued using the substantiated post-demerger share cost rather than the unreduced pre-demerger cost, preventing distorted valuation. On those grounds, the identified trade disallowances and closing-stock addition cannot be retained. en-us Wed, 30 Sep 2026 00:00:00 +0530 Tue, 13 Oct 2026 07:21:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=800892 Share-trade disallowances founded on alleged accommodation entries are unsustainable where contract notes, demat delivery records, securities transaction tax payments and banking-channel transactions establish ordinary-course trades, with no material linking the taxpayer to accommodation entries. Under section 145(2) and ICDS-VIII, an approved demerger requires the original acquisition cost of shares to be apportioned between retained shares and securities allotted by resulting companies. Closing stock may therefore be valued using the substantiated post-demerger share cost rather than the unreduced pre-demerger cost, preventing distorted valuation. On those grounds, the identified trade disallowances and closing-stock addition cannot be retained. Case-Laws Income Tax Wed, 30 Sep 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=800892