Vidisha Jain (CA FINAL) (155 Points)
26 June 2010Hi frenz...
Had a doubt... Mr. X has invested around 6 lakhs in a pvt. ltd. co. Now that company will be getting closed down soon. Due to losses, the company will not be able to repay back the investment of 6 lakhs.
So, can X claim that loss under PGBP ?
Thanks in advance
Amir
(Learner)
(4016 Points)
Replied 26 June 2010
Dear Vidisha,
Wat was the mode of investment in Pvt. Ltd?
1) If through shares/debentures -
- Held as capital asset - Capital Loss
- Held as Inventory - It will be removed from the valuation of closing stock and automaticaly the profit gets adjusted.
2) As a loan other than debenture -
- If advance was givrn in a normal course of business of Mr. X - deduction will be allowed u/s 36
- in personal capacity - No treatment i:e dead loss.
SIVASIVA
(FCA, Future CA)
(4935 Points)
Replied 26 June 2010
vidisha,
i presume you were asking in the angle that the investment which is lost can be claimed or not?
It cannot be claimed as a business loss as you didn't mention he is doing the same as business.
You itself say that it is an investment, hence can be claimed only in Capital Gains Head subject to proper evidence as to the loss.
| Originally posted by : SIVASIVA | ||
 |
vidisha, i presume you were asking in the angle that the investment which is lost can be claimed or not? It cannot be claimed as a business loss as you didn't mention he is doing the same as business. You itself say that it is an investment, hence can be claimed only in Capital Gains Head subject to proper evidence as to the loss. |
 |
agree with sivasiva
PRATEEK
(ACA)
(102 Points)
Replied 27 June 2010
I TOTALLY AGREE WITH SIVASIVA ,BUT SIVASIVA I WANTED TO KNOW THAT IF THE COMPANY IS GOING TO BE LIQUIDATED AND THE ASSESSE IS NOT GOING TO RECIEVE ANYTHING WHETHER THIS WOULD BE CONSIDERED AS A TRANSFER OF CAPITAL ASSET AS DEFINED WITHIN THE SCOPE OF CAPITAL GAIN BECAUSE IF IT IS NOT CONSIDERED AS A CAPITAL ASSET THEN THERE CANNOT BE ANY CAPITAL GAIN/LOSS
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