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2019 (1) TMI 268 - AT - Income TaxLoss incurred on sale of shares of subsidiary company - long-term capital loss OR business loss - Held that:- Loss on sale of shares held as investment in subsidiary companies is a revenue loss. Also when holding company invests amounts for business of its subsidiary, it must be held for business expediency. We find merit in the arguments advanced by the assessee. See BRIGHT ENTERPRISES PVT. LTD. VERSUS COMMISSIONER OF INCOME TAX, JALANDHAR (PUNJAB) [2015 (11) TMI 342 - PUNJAB & HARYANA HIGH COURT] We are of the considered opinion that the CIT(A) was not justified in holding that the loss incurred on sale of shares of subsidiary companies is a capital loss and not a business loss. The grounds raised by the assessee are accordingly allowed. - decided in favour of assessee.
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