The Assessing Officer disallowed the assessee’s short-term capital loss on sale of shares, treating the transactions as accommodation entries on the basis of reports of the Investigation Wing and SEBI. The Tribunal held that no independent enquiry was conducted by the Assessing Officer, the statements of entry operators did not name the assessee, and there was no direct evidence connecting the assessee with the alleged accommodation entries. Additions based merely on probabilities, surmises and conjectures were unsustainable. The assessee was entitled to set off the short-term capital loss against long-term capital gains. (AY. 2013-14).