TaxTMI 
TaxTMI 
2015 (7) TMI 1425
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....is engaged in the business of trading of goods and land etc. The assessee declared total long-term capital loss of Rs.6,34,22,609/- on account of sale of unlisted securities. On perusal of the details, it was observed by the AO that the assessee claimed to have sold shares inter alia of M/s Pioneer Ltd., at Rs.0.10/- per share in the year under consideration which were subscribed by it at Rs.40/-, being, face value of Rs.10/- and share premium of Rs.30/- per share. On being called upon to justify the claim of loss of Rs.3,35,66,618/-, the assessee submitted that the shares of M/s Pioneer Ltd. sold by it were independently valued by M/s Pricewater House Coopers Pvt. Ltd. at Rs.0.10/- per share and it is the same price at which the assessee s....
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....esting to note that M/s Pioneer Ltd., whose shares the assessee claims to have subscribed to and sold to M/s ASA Agencies, is also a group concern. In other words, the assessee, company whose shares were apparently transacted and the alleged purchaser of shares are all related enterprises. On a specific query, the ld. AR admitted that shares of M/s Pioneer Ltd, were subscribed to by the assessee on the basis of private placement and no public issue was brought out. This shows that the shares of M/s Pioneer Ltd. were not listed on any stock exchange. When I consider the facts and circumstances of the case in entirety, namely, the assessee purchasing shares of M/s Pioneer Ltd. on 30.3.2007 for a sum of Rs.40/- and, then, selling such shares t....
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....idered by applying the test of human probabilities. It was further observed that an inference should be drawn on the basis of the circumstances available on the record. Considering the circumstances of the transaction in that case, the Hon'ble Supreme Court has held that an inference could reasonably be drawn that the winning tickets were purchased by the appellant after the event and the authorities were right in drawing an adverse inference against the assessee. 6. Adverting to the facts of the instant case, I find that the AO was fully justified in rejecting the genuineness of the transaction of purchase and sale of shares on the test of human probability. The entire story concocted by the assessee and its group concerns is aimed at def....
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....payment for purchase of shares of M/s Solaris Holdings Ltd., even till the date of its sale and it was only thereafter that the purchase consideration was claimed to have been paid. He, therefore, disallowed loss of Rs.97.35 lac. The ld. CIT(A) overturned the impugned order. The Revenue is aggrieved against the deletion of addition. 8. I have heard the rival submissions and perused the relevant material on record. It is observed that the assessee claimed to have purchased shares of M/s Solaris Holdings Ltd., on 15.5.2006 from M/s Avantha Holdings Ltd., for a sum of Rs.8 crore. No payment was made for the purchase of these shares till the alleged liquidation of such shares in 2009 to M/s ASA Agencies Pvt. Ltd. When I consider the totality o....