Write-off of foreign subsidiary investment is a business loss: Karnataka HC

Ace Designers Limited Vs Additional Commissioner of Income Tax (LTU) (Karnataka High Court) Karnataka High Court, in a significant ruling, has held that the write-off of an investment in a wholly-owned foreign subsidiary, established for business purposes, constitutes a business loss and not a capital loss. The decision came in the case of Ace Designers Limited versus the Additional Commissioner of Income Tax, concerning the assessment year 2004-05. The court allowed the appeal filed by Ace Designers, a manufacturer and exporter of computerized numerically controlled machines. The company had ...