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2017 (11) TMI 1864 - HC - Income TaxNon-allowability of deduction on account of investment in subsidiary company written off - HELD THAT:- Assessee company in order to expand its business world-wide had set up the Brick and Mortar retail store at different tourist location in Mexico through its 100 subsidiary. The investment was not to earn dividend but to expand its business and expenditure was purely for business expansion of assessee’s product. Thus the investment made by the assessee into the 100% subsidiary company Indo Mexico was with the sole object of expanding its business and for marketing the products of the assessee company. The investment made to the 100% subsidiary company Indo Mexico was out of business considerations, in order to promot business interest of the assessee. Thus the investments made were out of commercial expediency and for business interest. In our opinion, the written off such investment in 100 % subsidiary which was not recoverable was an admissible business loss which is proximately relatable to assessee’s business. Therefore, the said loss so incurred has been rightly claimed by the assessee company as deductible business loss. No substantial question of law arises.
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