Company's Capital Loss Claim on Redeemed Shares Deemed Legitimate; New Share Subscription Valid for Tax Benefits.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Addition regarding claim of capital loss - redemption of the preference shares - in order to get the return on old investment, it has redeemed the shares by subscribing fresh shares with better return and term - it is decision for the benefit of the company and simply because it is reducing taxable income does not mean that it will become bogus - allowable capital loss....