ITAT allows short-term capital loss on share sale, rules oral family agreements credible without additional sham evidence

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....The ITAT allowed the taxpayer's appeal regarding disallowance of short-term capital loss on share sale. The tribunal held that oral agreements between family members deserve equal credibility and mere deficiencies in ROC records cannot justify treating transactions as sham without additional evidence. The court emphasized that strong suspicion cannot substitute for evidence supporting the assessee's claim. The tribunal ruled that the onus lies on Revenue to prove apparent transactions are not genuine, rather than requiring taxpayers to prove legitimacy of properly documented share sales with consideration movement. The disallowance was reversed and capital loss claim was accepted.....