It is mentioned in Module that Sec 372A is not applicable in case of gurantee given by A ltd. in respect of loan made by any person to A's wholly own subsidiary.
So does it mean that Sec 372A is applicable to A Ltd in case of guarentee given by it to it's wholly own subsidiary that is B Ltd for laon granted by B to any person ?
05 June 2011
Obviously, exemption is granted only when guarantee is provided for or on behalf of subsidiary not for anyother company, so in above case exemption will not be applicable and 372A is applicable.
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