Sham transactions through stock exchanges doesn’t make transactions genuine

PCIT Vs Zulu Merchandise Private Limited (Calcutta High Court) Calcutta High Court held that merely because share transactions were done through stock exchanges it doesn’t make the transactions genuine. Accordingly, bogus capital loss claim rejected and appeal of revenue allowed. Facts- The assesseee is a non banking financial company (NBFC) engaged in money lending and trading of shares and securities. Upon analysis of the entire data, the assessing officer held that there is no genuine business activity in the company, the thin trading volume, the low net profit, the low EPS, and meagre in...