https://www.taxtmi.com/highlights?id=79477 Expenditure incurred by subsidiary company for overseeing and executing contracts entered by parent company cannot be considered as business loss of subsidiary. Subsidiary did not undertake its own business and expenses were not occasioned in process or for its business. Expenditure must be connected with or related to business carried on by assessee and profits and gains therein to allow loss. Holding and subsidiary are separate entities, expenditure pertaining to one cannot be claimed by other. For deduction u/s 37, prerequisites are expenditure incurred in respect of business carried on by assessee and spent wholly and exclusively for its own business. Expenditure incurred by subsidiary not in ordinary course of its business cannot be allowed as deduction. en-us Wed, 17 Jul 2024 08:06:56 +0530 Wed, 17 Jul 2024 08:06:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=79477 Expenditure incurred by subsidiary company for overseeing and executing contracts entered by parent company cannot be considered as business loss of subsidiary. Subsidiary did not undertake its own business and expenses were not occasioned in process or for its business. Expenditure must be connected with or related to business carried on by assessee and profits and gains therein to allow loss. Holding and subsidiary are separate entities, expenditure pertaining to one cannot be claimed by other. For deduction u/s 37, prerequisites are expenditure incurred in respect of business carried on by assessee and spent wholly and exclusively for its own business. Expenditure incurred by subsidiary not in ordinary course of its business cannot be allowed as deduction. Highlights Income Tax Wed, 17 Jul 2024 08:06:56 +0530 https://www.taxtmi.com/highlights?id=79477