S.68 – Assessee, engaged in the business of trading in shares and securities, sold certain shares during the year at loss which was disallowed by AO after invoking S.68 of the Act on the pretext that the underlying transaction was an accommodation entry. ITAT found that (1) purchase of shares was not disputed by AO, (2) transactions were carried out through proper regulatory channels, (3) assessee’s main business was that of trading in shares and securites, (4) loss incurred on sale of the very same shares in earlier year was accepted by AO and (5) AO had not established assessee’s dealing with the so-called accommodation entry provider. Under such circumstances, ITAT held that assessee had rightly claimed the business loss on sale of shares in question. Accordingly, addition made by AO was deleted