Loss on Share Sale Is Capital Loss, Not Expense: ITAT

DCIT Vs Jayajothi and Company Private Limited (ITAT Chennai) Loss on Sale of Shares Is Capital Loss, Not Disallowable Expense – ITAT Chennai Clarifies Correct Treatment The Chennai Bench of the ITAT partly allowed the Revenue’s appeal for AY 2014-15 and clarified the correct tax treatment of loss on sale of shares amounting to ₹6.81 crore. The Tribunal held that although the assessee had initially debited the loss to the Profit & Loss Account and adjusted it against business loss, such an accounting mistake does not alter the intrinsic nature of the loss. The ITAT affirmed that the l...