The Assessee had claimed Short Term Capital Loss (STCL) on sale of shares of M/s Looks Health Services Ltd, which as per the AO was bogus in nature. According to the AO the transaction was sham as the Company was not financially viable, the price of the scrip had unusually skyrocketed without any financial or economic basis and unusually decreased, the script in that period were traded in bulk and most people who indulged in bulk trading were from Ahmedabad city only. However, the ITAT observed that the Assessee had carried out purchase and sale of shares on the Bombay Stock Exchange, as per the Assessment Order, no enquiry or investigation was carried out without any concerned authority regarding rigging up the price of Looks Health Services Ltd or by Assessee’s broker. Therefore, there was no information or finding based on corroborative material available with AO that the price of shares were rigged. The principle of surrounding circumstantial evidence was also not strong enough to draw an adverse inference. Therefore, the order of CIT(A) was set aside. PCIT v. Krishna Devi reported 126 taxmann.com 80 followed. (AY. 2014-15)