Notional Loss on renunciation of rights to subscribe partly convertible debentures based on notional cost not allowed

Brief of the Case Delhi High Court held In the case of CIT vs. M/s Abhinandan Investment Ltd. that there is no necessity or occasion for trader to separately determine the cost of acquisition of each item of goods sold by him; he is only required to prepare a trading account while reflecting the aggregate sales and purchases. Thus, in a case of a trader, the principle of ascertaining notional cost attributable to the rights entitlement is neither necessary nor apposite. Further there is no scope to provide for a deduction of notional business loss which is neither incurred by the Assessee nor...