The asseessee in the process of winding up sold some of its depreciable assets and suffered losses thereon as same were sold below written down value of those assets in books of account. The assessee claimed the said loss as business loss. Assessing Officer rejected assessee’s claim. On appeal the Tribunal held that   section 41(2) is applicable only where sale value along with scrap value exceeds written down value and since in instant case, sale value realized was less than written down value, section 41(2) would not apply. On appeal the High Court held that  even if sections 28 to 44DB talk only of taxability on excess received by assessee over written down value of assets, it cannot exclude or ignore minus figure or loss occurring on such sale transactions. Since certain assets of block of assets, not being immovable property of assessee, were sold during regular course of business, before it was wound up during relevant previous year, loss occurring on such sale at a figure less than written down value of assets should be treated as Business Loss under section 41(2) of the Act.  (AY. 2001-02)