ITAT held that sale of shares by the assessee to the firm in which he is a Partner as a genuine transaction

ACIT Vs Chetan Durgadas Mehra (ITAT Mumbai)- Assessing Officer considered the sale of shares by the assessee to the firm in which he is a Partner as a non genuine transaction. Consequently he re-worked out the P&L account as stated in page 8 of the assessment order and determined the loss from the business at a lesser figure of Rs. 52,56,153/- as against Rs. 1,95,98,779/- incurred by the assessee in the business of purchase and sale of shares and securities. The reasons for Assessing Officer’s action in disallowing the amount is that (a) the shares were not transferred out of the Demat a...