Disallowance of STCL was justified in case of drastic decrease in share rate

O3 Capital Global Advisory Pvt. Ltd. Vs DCIT (ITAT Bangalore)

Conclusion: Purchase and sale of shares were arranged transactions to create bogus capital short term capital loss in the garb of real transactions with the sole motive to claim short term capital loss so as to evade tax. Hence the same was not allowable under section 28.

Held: Assessee advanced a sum of Rs.5.64 crores to Morpheus Capital Advisors Pvt. Ltd. (MCAPL), a company incorporated by the assessee itself. The said co

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