https://www.taxtmi.com/caselaws?id=768729 The ITAT Delhi rejected the assessee's claim for capital gains loss on asset transfers under a scheme of arrangement. The tribunal held that the transaction was not a demerger under section 2(19AA) as assets were transferred to SPVs solely for debt liquidation without share allotment or going concern concept. The assets transferred at market value against indexed cost resulted in allowable capital loss. The tribunal also allowed the assessee's appeal regarding interest cost disallowance on loans to group companies, following precedent decisions. Disallowance under section 14A was deleted following Era Infrastructure Ltd. precedent, and staff welfare expense disallowance was confirmed as deleted by CIT(A). en-us Wed, 26 Mar 2025 00:00:00 +0530 Thu, 10 Apr 2025 20:45:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768729 The ITAT Delhi rejected the assessee's claim for capital gains loss on asset transfers under a scheme of arrangement. The tribunal held that the transaction was not a demerger under section 2(19AA) as assets were transferred to SPVs solely for debt liquidation without share allotment or going concern concept. The assets transferred at market value against indexed cost resulted in allowable capital loss. The tribunal also allowed the assessee's appeal regarding interest cost disallowance on loans to group companies, following precedent decisions. Disallowance under section 14A was deleted following Era Infrastructure Ltd. precedent, and staff welfare expense disallowance was confirmed as deleted by CIT(A). Case-Laws Income Tax Wed, 26 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768729