J S BHAVSAR
(CONSULTING)
(1288 Points)
Replied 22 September 2021
| Originally posted by : Samantha J | ||
 |
Since the debit is on account of court order you cannot claim loss as they have been extinguished not transferred to result in loss. |  |
I doubt if the Supreme Court explicitly mentioned in their order that the shares be deleted from shareholder demat accounts. SC does not do that.
Rocks Parss
(256 Points)
Replied 26 September 2021
Isn't it extinguishment of right/title which is also included in definition of transfer and hence long term capital loss should be allowed?
J S BHAVSAR
(CONSULTING)
(1288 Points)
Replied 28 September 2021
| Originally posted by : Rocks Parss | ||
|
Isn't it extinguishment of right/title which is also included in definition of transfer and hence long term capital loss should be allowed? | |
Definition of Transfer may stand true only if there was a "buyback" by the company itself. Here there is no buyback. A Corporate Action was issued by the company to delete all Essar Steel shares from the demat accounts. So there is no sale, no transfer and no buyback.
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