Case Law Analysis
|Income Tax Appellate Tribunal
Section 45 IT Act | Genuine Financial Distress Validates Capital Loss Set-off from CCDs : ITAT Delhi
ITAT Delhi rules that short-term capital loss from Compulsory Convertible Debentures (CCDs) can be set off against long-term capital gains if the transaction stems from genuine financial distress, rejecting tax authorities' colourable device allegations. The ruling reinforces that commercial substance prevails over mere tax effects for taxpayers facing economic hardship.