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Recently, the Delhi High Court (High Court) in the case of Siel Ltd (the taxpayer) held that share sale transaction between Joint Venture (JV) partners resulting in loss is not a ‘colourable device’. The High Court observed that the Ministry of Industry had granted approval for purchase/sale of shares. Further, the Reserve Bank of India (RBI) had given no objection to the transaction permitting JV partners to acquire shares in the JV from the taxpayer. The reliance of the taxpayer on the valuation report was also accepted by the RBI when they granted express permission.