Lifestyle And Media Holding Limited Vs DCIT (ITAT Delhi)
Holding Company Activity Is Business: Delhi ITAT Allows Expenses & Set-off Despite No Operating Revenue
No Revenue, Yet Business Exists- Holding Is Doing Business: ITAT Allows Expenses Even Without Operating Income;
Strategic Investments Pass Section 2(13) Test- Artificial Person Still Needs Staff: Holding Co’s Expenses Held Allowable
Set-up Is Enough: ITAT Rejects “No Business Activity” Theory for Holding Companies
Delhi ITAT ‘E’ Bench in Lifestyle and Media Holding Ltd. (formerly NDTV Lifestyle Holdings Ltd.) Vs. DCIT [ITA No. 64/Del/2019 (AY 2014-15), ITA No. 3714/Del/2024 (AY 2015-16) & ITA No. 255/Del/2020 (AY 2016-17), order dated 31.12.2025] allowed Assessee’s appeals holding that activity of a holding company in making strategic investments in subsidiaries constitutes “business” u/s 2(13). AO had disallowed business expenses on ground that Assessee had not carried out any business activity and had no income under head “Profits & gains of business or profession”, and consequently denied set-off of business loss against income from other sources. Tribunal noted that Assessee’s main object was to act as holding company for non-news lifestyle media ventures and it had in fact made substantial investments in group companies to exercise controlling interest. Relying on coordinate bench decisions in Tata Sons Ltd. and NDTV Networks Ltd., Tribunal held that earning of income is not prerequisite for allowability of business expenditure and that holding investments for strategic control itself is business activity. Accordingly, business expenses were allowable u/s 37(1) and current year business loss was eligible for set-off u/s 71 against income from other heads. Tribunal allowed all three assessment years consistently and set aside contrary findings of CIT(A).
