Allowability of Long term capital loss on sale of shares of a group company partly to a related buyer and partly to an unconnected third party buyer

Issue – Whether the transaction of sale of shares of a group company at a loss could be treated as a non-genuine transaction intended solely to create a loss to adjust against taxable income? Held in favour of Assessee :- It is observed that the claim of the assessee for long term capital loss arising from sale of shares of was disallowed by the A.O. by treating the relevant transactions of purchase and sale of shares as a colourable device adopted by the assessee with an ultra motive to claim the long term capital loss. His allegation of the colourable device having been used by the ass...