Held that  loss on the capital account by way of reduction of capital invested and therefore any loss on capital account, is  a capital loss and not a notional loss.  That the reduction of capital was extinguishment of rights in the shares and it amounted to transfer within the meaning and scope of section 2(47).  That the assessee did not receive any consideration on reduction of capital but its investment had reduced to loss resulting into capital loss and while computing the capital gains, capital loss had to be allowed or set off against any other capital gains. The view of the Assessing Officer is possible view  the Assessing Officer had rightly allowed the computation of long-term capital loss to be set off against the capital gains shown by the assessee. Revision order is set aside.  (AY. 2009-10)