https://www.taxtmi.com/caselaws?id=448637 The ITAT Mumbai ruled in favor of the assessee company regarding revision under Section 263 for computation of capital gains/losses. The case involved reduction of paid-up equity share capital under a scheme of arrangement where the company claimed long-term capital loss set-off. The PCIT had held the AO's assessment order erroneous and prejudicial to revenue interests. The ITAT held that capital reduction constitutes transfer under Section 2(47), resulting in legitimate capital loss even with nil consideration received. Following the Gujarat HC precedent in CIT vs. Jaykrishna Harivallabhdas, the tribunal concluded the AO correctly allowed the long-term capital loss set-off, setting aside the PCIT's Section 263 order. en-us Tue, 23 Jan 2024 00:00:00 +0530 Mon, 16 Dec 2024 12:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=448637 The ITAT Mumbai ruled in favor of the assessee company regarding revision under Section 263 for computation of capital gains/losses. The case involved reduction of paid-up equity share capital under a scheme of arrangement where the company claimed long-term capital loss set-off. The PCIT had held the AO's assessment order erroneous and prejudicial to revenue interests. The ITAT held that capital reduction constitutes transfer under Section 2(47), resulting in legitimate capital loss even with nil consideration received. Following the Gujarat HC precedent in CIT vs. Jaykrishna Harivallabhdas, the tribunal concluded the AO correctly allowed the long-term capital loss set-off, setting aside the PCIT's Section 263 order. Case-Laws Income Tax Tue, 23 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=448637