ITAT Mumbai Judgments — August 2017

The Tribunal held that the issue was already decided in favour of the assessee by a previous ITAT order for AY 2009-10. Therefore, the assessee's appeal was allowed, and the Revenue's appeal was dismissed.

The Tribunal held that the AO's method of arriving at a negative cash balance and making a 100% addition was not justified. It also agreed with the CIT(A) that Section 44AF could not be applied as it was not claimed in the original or revised return.

The Tribunal agreed with the lower authorities that the transaction of purchasing shares at an unrealistic price and selling them at a substantially lower price within a month was a colorable device to avoid tax. The Tribunal upheld the disallowance of the capital loss.