TMI Blog2008 (4) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... t that shares were not sold was of no significance – in fact the shares could no have been sold – tribunal was right in holding that shares were stock-in-trade and had therefore allowed the loss – loss had to be treated as trading loss – deduction allowed - 1 of 2000 - - - Dated:- 30-4-2008 - DEEPAK GUPTA and KULDIP SINGH JJ. Vinay Kuthiala and Ms. Vandana Kuthiala for the Commissioner. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubsidiary company, i.e., Himachal Worsted Private Ltd., was wound up in the year 1985. The assessee is a Government owned company and the subsidiary company was also a government owned company. The subsidiary company was wound up under the orders of the State Government since it has incurred heavy debts and had accumulated losses of more than Rs. 3 crores. The winding up petition was allowed by a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n allowed as a deduction. We are not in agreement with this contention. Once a company has been ordered to be wound up there is no question of any party dealing in the shares of the said company. The Tribunal has come to a finding of fact that the shares were stock-in-trade and has, therefore, allowed the loss. The loss, in our opinion, has to be treated as a trading loss. The mere fact that the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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