Assessee made investment in equity of its wholly owned subsidiary company set up in USA Subsidiary could not perform upto company’s expectations and, therefore, it was wound up. Assessee claimed loss arising from investment made in its subsidiary as business loss on ground that investment was made for purpose of business. Assessing Officer disallowed the loss. Order of the Assessing Officer was affirmed by Appellate Tribunal. On appeal the Court held that assessee made investment in shares of its subsidiary company for enhancement of business activity of assessee in global market which primarily related to business operation of assessee.  Investment was not made with a view to create capital asset in form of holding shares. Accordingly the loss claimed by assessee was to be allowed as business loss. (AY. 2004-05)