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TMI Blog2019 (1) TMI 1414X X X X Extracts X X X X X X X X Extracts X X X X ..... error in the view of the Tribunal. If the loss suffered by the assessee was treated as capital loss, there is nothing on record to hold that the assessee was not entitled to claim the same as such. Claim of the assessee would also get support from Section 46(2) of the Act. Section 46(1) of the Act provides that notwithstanding anything contained in Section 45, where the assets of a company are distributed to its shareholders on its liquidation, such distribution shall not be regarded as a transfer by the company for the purposes of Section 45. Disallowance of depreciation by adjusting the Written Down Value (WDV) of certain assets of the company - Held that:- The assessee has pointed out that in any case, such adjustment was carried out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the facts and in the circumstances of the case and in law, the Tribunal was right in allowing a sum of ₹ 5,17,29,000/by way of capital loss ? (ii) Whether on the facts and in the circumstances of the case and in law, the Tribunal was right in deleting disallowance of a claim under Section 80IA of the Income Tax Act, 1961? (iii) Whether on the facts and in the circumstances of the case and in law, the Tribunal was right in deleting disallowance of depreciation of ₹ 1.07 crores made by the Assessing Officer by adjusting the Written Down Value (WDV) of certain assets of the company ? 2. Question no.(i) noted above was the most hotly contested question by the Revenue and it revolves around the assessee's claim of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess loss. The Tribunal instead treated such loss on capital account and was urged to examine the alternative contention of the assessee that such loss in any case, would be recognized as a capital loss. The Tribunal merely accepted the same making reference to the decisions of the Supreme Court and also referring to Section 46(2) of the Act. We do not find any error in the view of the Tribunal. If the loss suffered by the assessee was treated as capital loss, there is nothing on record to hold that the assessee was not entitled to claim the same as such. Claim of the assessee would also get support from Section 46(2) of the Act. Section 46(1) of the Act provides that notwithstanding anything contained in Section 45, where the assets of a co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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