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 companies only as a measure of commercial expediency and to further its business objective and were related to the business operation of the company. The p...