https://www.taxtmi.com/caselaws?id=755684 The Telangana HC ruled against a subsidiary company claiming business expenditure deductions for costs incurred while overseeing and executing contracts of its parent company. The court held that since the subsidiary conducted no independent business and the expenditure was solely for supporting the parent company's operations, it could not be considered the subsidiary's business loss. Under Section 37 of the Income Tax Act, deductions require expenditure to be wholly and exclusively for the assessee's own business. The court emphasized that parent and subsidiary companies are separate entities, and expenditure of one cannot be claimed by the other. The expenditure was deemed not incidental to the subsidiary's business. en-us Fri, 28 Jun 2024 00:00:00 +0530 Wed, 17 Jul 2024 08:06:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=755684 The Telangana HC ruled against a subsidiary company claiming business expenditure deductions for costs incurred while overseeing and executing contracts of its parent company. The court held that since the subsidiary conducted no independent business and the expenditure was solely for supporting the parent company's operations, it could not be considered the subsidiary's business loss. Under Section 37 of the Income Tax Act, deductions require expenditure to be wholly and exclusively for the assessee's own business. The court emphasized that parent and subsidiary companies are separate entities, and expenditure of one cannot be claimed by the other. The expenditure was deemed not incidental to the subsidiary's business. Case-Laws Income Tax Fri, 28 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=755684