Without any evidence to doubt the genuineness, the resultant capital loss cannot be disallowed: ITAT Mumbai

 

If the assessee arranges her affairs within the legal framework and through legitimate means to reduce its tax liability, the Assessing Officer cannot prevent her from doing so. When there is no evidence on record to doubt the genuineness of the transactions entered into by the assessee, the resultant capital loss derived out of such transaction cannot be disallowed.

It was decided in ITAT, Mumbai in the case of Ranu Vohra vs. ACIT Circle 4(1)(1) ITA 412/MUM/2024 dated 29.11.2024.

Let us have a Short Overview of the case:

The assessee has offset the LTCG against the STCL.

The shares of Mindtree Ltd. were purchased by the assessee between 17.02.2016 to 04.03.2016.

Whereas, they were sold during the period of 09.03.2016 to 31.03.2016. According to the Assessing Officer, by adopting a colorable device of selling the shares of M/s Mindtree Ltd.

The assessee have anticipated the reduction in price due to issuance of bonus shares. Therefore such losses cannot be allowed.

The copy of the order is as under:

1732865408-PxZHYs-1-TO