Allowing the appeal of the assessee the Tribunal held that; The reduction of share capital of a company by way of reducing the face value of each share from Rs. 1,000 to Rs. 500 amounts to “extinguishment of rights” and is a “transfer” u/s 2(47) of the Act. The assessee is eligible to claim a capital loss therefrom followed (Kartikeya V. Sarabhai v. CIT (1998) 228 ITR 163 (SC). (ITA No. 445/Bang/2018, dt. 29.11.2018) (AY. 2014-15)
Jupiter Capital Pvt. Ltd. v. ACIT (Bang)(Trib), www.itatonline.org
S. 45 : Capital loss-Transfer-The reduction of share capital of a company by way of reducing the face value of each share from Rs. 1,000 to Rs. 500 amounts to “extinguishment of rights” and is a “transfer” u/s 2(47) of the Act- The assessee is eligible to claim a capital loss therefrom followed (Kartikeya V. Sarabhai v. CIT (1998) 228 ITR 163 (SC). [S. 2(47)]