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2018 (6) TMI 1057 - HC - Income TaxDisallowance of loss on sale of debentures - guinity of claim - set off of loss - Held that:- Court delivered its judgement in case of Deepak Nitrite Ltd. vs. CIT [2008 (5) TMI 233 - GUJARAT HIGH COURT] in the cross references filed by the assessee and the department against the Tribunal's judgement where court said that it is open to Tribunal to decide the ground of appeal raised by the Revenue and determine, whether the loss in question was a genuine transaction or not - thus pursuant to such decision Tribunal passed a fresh order holding that the commercial rationale of the transaction, when viewed in totality, cannot be adjudged to be unjustified. The transactions are real and true and do not violate any provisions of law. They cannot be said to be artificial, counterfeit, feigned or a contrivance - since assessee has sold a capital asset which has resulted in a capital loss of ₹ 24,43,750/ - thus as per the provisions of section 71 the loss suffered on the sale of capital asset has to be set off against the income chargeable to tax under other heads of income. There cannot be any escape from giving this effect to the transactions entered into by the assessee - thus the loss is allowed - Decided against the revenue.
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