2016 (10) TMI 1099

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....unt of disallowance of loss in trading of shares of Fast Track Ltd., Indocare Pharma Ltd., Sea Gul Le Ltd. and Wellworth Overseas Ltd. 3. Rival submissions were heard at length. Having heard the rival submissions, we have carefully perused the orders of the authorities below. 4. Briefly stated the facts of the case are that the assessee is a share broker whose return of income for the year under consideration was selected for scrutiny assessment. During the course of the scrutiny assessment proceedings, the A.O. found that the assessee has made available funds to the persons involved in some IPO Scam. The A.O. further observed that the assessee has received shares from said persons and sold the said shares in the market and the surplu....

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.... not merely book/paper entries as observed by the A.O. The deliveries of shares have been routed through the demat accounts. The payments have been made and received through banking channels. Confirmations of the parties with whom the transactions have been entered into have been furnished and have not been disputed. Market quotations in support of price of shares on the date of purchase and sale are furnished which establishes that the transactions are at market rates. Thus, I agree with the argument of the A.R. that simply because some of the transactions are off market ones; they do not lead to the conclusion that the transactions are sham or fake. It is submitted that off market transactions are valid transactions though not through sto....