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2019 (5) TMI 559 - BOMBAY HIGH COURTDisallowance of short term capital loss in view of provisions of Section 2(14) and 2(42) - issue of warrants convertible into equity share at any time within the period of 18 months upon payment of the remaining amount of ₹ 280.75 per warrant - AO rejected the claim on the ground that at the end of the period of 18 months, the warrant had become valueless and that, therefore, there is no transfer of capital asset - HELD THAT:- We notice that in the case of Deputy Commissioner of Income Tax Vs. BPL Sanyo Finance Ltd. [2008 (2) TMI 386 - KARNATAKA HIGH COURT] under similar circumstances, had held that the loss suffered by the Assessee on forfeiture of its rights in the share was a capital loss. Delhi High Court, relying on the said decision of Karnataka High Court in the case of BPL Sanyo Finance Ltd. (supra), in case of Commissioner of Income Tax Vs. Chand Ratan Bagri [2010 (1) TMI 123 - DELHI HIGH COURT] under similar circumstances, had held that the forfeiture of payment towards convertible warrant was a short term capital loss - Decided against revenue.
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