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2008 (2) TMI 579 - HC - Income TaxBusiness loss- The assessee with an intention to promote M/s. MIC Auto Ancillaries Limited had purchased shares of the said company for a sum of Rs. 45,52,870. After holding such shares for a period of eight years, it thought it fit to sell the same. Ultimately the said shares held by the assessee of M/s. MIC Auto Ancillaries Limited were sold for a price of Rs.15,96,000 thereby it was put to a net loss of Rs. 29,56,870. the Assessing Officer has disallowed share loss on the ground of that it is capital loss. The Commissioner (Appeals) and Tribunal held that holding of shares by the assessee in pursuance of its object should be treated as for the purpose of business and accordingly held any loss on sale of such share should be treated as business loss and not capital loss. Held that- the sale is made on a huge loss thus it is business loss.
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