Mark Corporate Advisors Pvt. Ltd. Vs ACIT (ITAT Mumbai)
ITAT Mumbai held that disallowance of claim of loss alleging participation in price rigging cannot be sustained since nothing is brought on record to demonstrate involvement of assessee in price rigging. Accordingly, claim of loss allowed.
Facts- The present appeal has been filed by the appellant mainly contesting that CIT(A) has erred in confirming the disallowance of business loss of Rs. 3,28,92,419/-, by holding the loss on sale of listed scrips as pre-arranged transaction. It is also contested that CIT(A) has erred in confirming the addition of Rs. 9,86,772/- made on arbitrary basis on account of alleged commission paid by the appellant for availing the business loss.
Conclusion- Held that there is nothing brought on record to demonstrate that name of the assessee finds place in the investigation reports to hold that it is involved in price rigging of the alleged two scrips as penny stock. Merely because some shareholders/operators colluded in the alleged rigging of share prices and merely because assessee was benefited indirectly, cannot be the reason to disallow the claim of loss by the assessee by alleging that assessee has participated in price rigging of the two scrips.
