Query on Transfer of Sundry Debtors-

santhosh (CA) (636 Points)

04 July 2009  

 

           Mr. X is assigning the right to receive amounts (i.e. Receivables) from his Trade Debtors to Mr. Y for a flat sum of 25 Lacs. Debtors Book value is Rs 3 Crores. Now the loss resulting from this transaction, Is this Loss a Business Loss or Capital Loss. Please Explain.