CA. Abhishek K. Pandey (Manager (Advance)) (901 Points)
09 December 2011
Giridhar S Karandikar
(Team Lead)
(7553 Points)
Replied 13 December 2011
Debtors of the company does not constitutes an Capital Asset, hence the loss arising on Debt Factoring also would not be a Capital Asset & hence would come under PGBP & not Capital Gain.
Capital asset refers to an asset which is not held by the organization in the ordinary course of the business & is not intended for sale in the near future. So loss/gain arsing from sale of an Capital Asset would be assessed under Capital Gains. So I don’t think that your analysis is correct.
Debtors of the company are held in the ordinary course of the business & any loss arising in relation to such would be assessed under PGBP.
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