Investment made by an assessee company to excercise control on other investee companies is an business activity

Last updated: 13 December 2022

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The Income Tax Appellate Tribunal (ITAT) in Mumbai has ruled that investments made by a company to gain control over other companies are considered a business activity. This means that losses incurred from such business activities can be set off against dividend income received from foreign subsidiaries. The tribunal also allowed deductions under Section 80G from the gross total income.

Court :
ITAT Mumbai

Brief :
ITAT BOMBAY RULED That investments made by an assessee company to exercise control over other investee companies constitutes a business activity.

Citation :

Daily Limit Reached