Loss on investment in equity shares is business loss

Seshasayee Paper and Boards Ltd. Vs JCIT (ITAT Chennai)

Held that the claim of loss accruing or arising as investment in equity shares, non-convertible debentures and zero coupon redeemable preference shares is not capital loss but eligible for deduction in computation of business loss

Facts-

AO during the course of assessment proceedings noticed from the profit & loss account that the assessee under the head ‘extraordinary items’ written off Rs.641.32 lakhs on account of loss of investment in Ponni Sugars (Orissa) Ltd . The details of investments made by assessee in Ponni Sugars (Orissa) Ltd., written off amounting to Rs.641.32 lakhs.

Conclusion-

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