Stock Exchange & Banking Channels Cannot Mask Sham Transactions Carried Out Through Bogus Capital Loss Claim Companies: Calcutta High Court

The Calcutta High Court has ruled that "stock exchange and banking channels cannot mask sham transactions" to claim bogus capital loss. The court found that even though the transactions were routed through official channels, the taxpayer had failed to provide a valid commercial reason for the transactions. The ruling serves as a warning against using legal loopholes to evade taxes, emphasizing that tax authorities can go beyond procedural compliance.