No set off of loss on sham and collusive transactions between sister concerns

RPK Warehousing (P.) Ltd. Vs ITO (ITAT Ahmedabad) Conclusion: Loss on the transactions in castor oil and castor seeds entered between sister concerns could not be allowed to be set-off against business income and LTCG on sale of land as these were speculative transactions as assessee had not obtained the delivery of goods of alleged trading since the purchased item was sold on the same day in the same quantity and also that there was no transportation expenses claimed by assessee. Held: During the course of scrutiny assessment proceedings, AO noted that assessee had warehouse rental income, we...