Holding company(Indian) need to write off investment in shares done in subsidiery company(registered in USA) as subsidiery is shut down.
Question: Will this loss be treated as Capital Loss or a business loss. What will be the accounting treatment for the same in the book of holding company. What disclosure is to be made in Notes to accounts of a holding company as Tax audit needs to be done for the same.
05 February 2022
India’s Karnataka High Court gave its decision on 9 September 2020 that the write-off of an investment originally made in a wholly owned subsidiary for the purpose of expanding the taxpayer’s business activities is a business loss.
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