The assessee carrying on the business of investment activity purchased 14,95,44,130 shares of Asianet Pvt Ltd, having face value of Rs.10. By an order of Hon’ble Bombay High Court, share capital of Asianet Pvt. Ltd was reduced to 9,988. However, the face value of the shares remained as Rs.10 even after reduction of the shares. Thus, the assessee had claimed the loss of Rs.1,64,48,55,840. However, the AO disallowed the same on the ground that though the number of shares reduced, the assessee continued to hold 99.88 per cent of shares and there is no effective transfer of shares and transaction did not result in relinquishment of rights. The Tribunal allowed the claim. On appeal dismissing the appeal of the Revenue the Court held that the AO’s view that the voting power had not changes as the percentage of the assessee’s shares had remained unchanged is untenable as the shares were transferred at face value, the redeemable valued would be Rs.99,880 whereas the value of 14,95,44,130 number of shares would have been Rs.1,49,54,41,300. Thus, there is extinguishment of rights of shares. However, there is no transfer within the meaning of the expression “transfer” as contained in section 2(47) of the Act.(AY. 2014-15)