Held that the long-term capital loss arose to the assessee-company on redemption of preference shares of another company at par only on account of indexation which is statutorily provided to the assessee. The loss cannot be treated as a colourable device, the long-term capital loss is allowable. (AY.2003-04)
Dy. CIT v. Piramal Enterprises Ltd. (2022) 216 TTJ 802 (Mum)(Trib)
S. 45 : Capital gains-Capital loss-Indexation-Loss on redemption of shares-Not colorable device-Allowable as capital loss.