Loss on Sale of Shares of Subsidiary Company is a Business Loss

Cosmos Industries Ltd. Vs DCIT (ITAT Delhi)

Conclusion: Loss on sale of shares held as investment in subsidiary companies is a revenue loss as when holding company invests amounts for business of its subsidiary, it must be held for business expediency.

FACTS –

Assessee, a company, is engaged in manufacturing and trading of sugar. Assessee had made investment in shares of two subsidiary. Assessee undertook the entire investment in the said c

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