ACIT Vs M/s. R J Corp. Ltd. (ITAT Delhi)
The A. O. has made a observation that the short term capital loss has been incurred on share of group companies and such shares have also been sold to group companies in such a manner that the entire shareholding of the investee company remains with the promoters and at the same time loss has been incurred in the books of the appellant company which has been offset against profit made on the sale of shares of M/s. Krizm Hotels Pvt. Ltd.
No discrepancy has been found in the transaction of purchase and sale of shares undertaken by the appellant company. Merely because the purchase and sale of shares have been made in the same financial year does not vitiate the genuineness of the transaction undertaken on the basis of commercial parameters and it cannot be said that there was an attempt to evade taxes.
It is not justified for the AO to conclude that merely because the shares under consideration have been sold by the appellant company to a group entity or that the shares under consideration belong to a group entity or that the purchase and sale of shares have been undertaken in the same financial year does not vitiate the genuineness of the transaction.
