10 May 2014
I believe your doubt is whether or not the negative networth is to be included in arriving at the capital gains.
Thats a normal confusion - whether capital gains is Rs 1 lakhs or Rs 2.5 lakhs.
In case of M/s Summit Securities Limited, Mumbai ITAT held that negative net worth is to be considered and accordingly the gains shall be Rs 2.5 lakhs.
My disclaimer is that I have not followed the cases subsequent to Sumit Securities case and any subsequent judgment in favor of assessee is not available to me.
CAclubindia
