Delisted shares deleted from Demat Account

Quick Summary
This discussion addresses how to report delisted shares, specifically Essar Steel shares, that have been removed from a Demat account following an acquisition and court order. The user is seeking guidance on how to declare these shares in the 'delisted/unlisted' table of ITR2 and whether a long-term capital loss can be claimed. The conversation explores whether the extinguishment of shares due to a court order constitutes a 'transfer' for capital gains purposes.

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.

Isn't it extinguishment of right/title which is also included in definition of transfer and hence long term capital loss should be allowed? 

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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