https://www.taxtmi.com/caselaws?id=8896 Section 12B of the Indian Income-tax Act, 1922 permits a capital loss only on an actual disposal of a capital asset by sale, exchange, transfer or relinquishment. The text explains that shares becoming worthless on a company's liquidation do not amount to relinquishment merely because their value falls to nil; the shareholder retains ownership and contributory rights until dissolution and winding up are complete. It further states that a decree debt is not relinquished by a unilateral book entry, because the creditor's rights continue until satisfaction or legal unenforceability. On that basis, neither the share loss nor the decree-debt write-off qualifies as a deductible capital loss. en-us Fri, 04 May 1973 00:00:00 +0530 Wed, 17 Jun 2009 09:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8896 Section 12B of the Indian Income-tax Act, 1922 permits a capital loss only on an actual disposal of a capital asset by sale, exchange, transfer or relinquishment. The text explains that shares becoming worthless on a company's liquidation do not amount to relinquishment merely because their value falls to nil; the shareholder retains ownership and contributory rights until dissolution and winding up are complete. It further states that a decree debt is not relinquished by a unilateral book entry, because the creditor's rights continue until satisfaction or legal unenforceability. On that basis, neither the share loss nor the decree-debt write-off qualifies as a deductible capital loss. Case-Laws Income Tax Fri, 04 May 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8896