Tribunal held that the assessee purchased the shares at Rs 155 per share and valued at Rs 10 per share as on 31-3-2002, so as to claim a notional loss in transaction of purchase of shares, though there was no fall in value of share of company in market. Accordingly the disallowance of loss is held to be justified . ( AY. 2002-03 to 2005 -06)
Elem Investments (P.) Ltd. v. ACIT (2018) 172 ITD 58 (Hyd) (Trib.)
S.28(i):Business loss- Value of shares held as stock- Devalued in books to evade tax – Claim being notional loss not allowable as business loss [ S.145 ]