Bombay HC Upholds short-term capital loss Disallowance of Sham Transaction

Trends Pharma Vs ITO (Bombay High Court) Bombay High Court has dismissed an appeal filed by Trends Pharma Pvt. Ltd. against the disallowance of short-term capital loss amounting to Rs. 70.24 lakh for Assessment Year 2010–11. The High Court upheld the concurrent findings of the Assessing Officer (AO), Commissioner of Income Tax (Appeals), and the Income Tax Appellate Tribunal (ITAT), which had deemed the share transaction in question as a sham and a colourable device employed to evade tax. The court concluded that no substantial question of law arose for consideration. The case involved a tra...