Documents supporting a Transaction cannot be accepted as genuine where fundamental transaction is shown to be sham

Brief fact of the case The assessee filed its return for each assessment year 1997-98, 1998-99 & 1999-2000 separately declaring total income of Rs.105518/-, Rs.59070 & Rs.70120/- respectively after claiming huge loss of Rs.46482500/-, Rs.53623950/- and Rs.61686500/- respectively which was said to have incurred on account of sale and purchase of shares of certain companies and diminution in the value of shares held as stock-in-trade by the assessee. Assessing officer, however, each year disallowed the said loss and assessed the income of the assessee as Rs.87220744/-, Rs.110681611/- and...