Sponsored
    Follow Us:

Case Law Details

Case Name : Bennett Coleman & Co. Ltd Vs ACIT (ITAT Mumbai)
Appeal Number : I.T.A. No. 3013/Mum/2007
Date of Judgement/Order : 30/09/2011
Related Assessment Year : 2002- 03
Become a Premium member to Download. If you are already a Premium member, Login here to access.
Sponsored

Bennett Coleman & Co. Ltd Vs ACIT (ITAT Mumbai Special Bench)- Whether the CIT(A) was justified in declaring long term capital loss of Rs. 22,21,85,693/- on account of reduction in paid up equity share capital – the loss arising on account of reduction in share capital cannot be subjected to provisions of sec.45 r.w.s. 48 and, accordingly, such loss is not allowable as capital loss. At best such loss can be described as notional loss and it is settled principle that no notional loss or income can be subjected to the provisions of the Income Tax Act.

Loss arising on account of reduction in share capital in a scenario where intrinsic rights of shareholder are not affected is not allowable as capital loss in the hands of shareholders and is notional in nature.

Sponsored

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Leave a Comment

Your email address will not be published. Required fields are marked *

Sponsored
Sponsored
Ads Free tax News and Updates
Sponsored
Search Post by Date
December 2024
M T W T F S S
 1
2345678
9101112131415
16171819202122
23242526272829
3031