DCIT Cir 3, Thane vs. Sequent Scientific Ltd, Thane
In the result, the appeal of the Revenue is dismissed
ITA 14/MUM/2017[2011-12]Status: DisposedITAT Mumbai27 Jul 2021AY 2011-12
Bench: Shri Rajesh Kumar & Shri Ravish Soodassessment Year: 2011-12
For Appellant: Shri H.P. Mahajani, A.RFor Respondent: Shri T.S. Khalsa, D.R
Section 10B
…ree loan to the subsidiary which uses it for business purpose, the holding company would ordinarily be entitled to deduction of interest on its borrowed funds. Similar view was also expressed by Hon'ble Bombay High Court in Vassanji Sons & Co. (P) Ltd v. CIT, 125 ITR 462 (BOM), wherein it was held that loss suffered by holding company on account of amount outstanding from subsidiary which went into liquidation was allowable business expense for the holding company. 5.5.12 (find that the ratio of various decisions including those of jurisdictional High Court and Hon'ble Supreme Court cited above and those relied…