Capital Loss from Share Cancellation in Capital Reduction Scheme Recognized as Long-Term Loss u/s 2(47) of Income Tax Act.

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....Disallowance of capital loss on account of capital reduction scheme - Extinguishment of rights in shares - definition of ‘transfer’ u/s 2(47) - Loss arising to the assessee for cancellation of its shares in CHIPL pursuant to reduction of capital should be allowed as long term capital loss eligible to be carried forward to subsequent years.....