TMI BlogDisallowance of Capital Loss on Sale of Shares - sale of shares due to the amalgamation of certain...Disallowance of Capital Loss on Sale of Shares - sale of shares due to the amalgamation of certain entities - The AO disallowed the loss, treating it as an artificial loss created on paper. - The ITAT held that the AO unjustifiably disallowed the capital loss. The transactions leading to the loss were legitimate and supported by commercial rationale, including a valid business restructuring and divestment strategy supported by an independent valuation. Therefore, the CIT(A)'s deletion of the disallowance was upheld, dismissing the Revenue's appeal on this issue. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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