When the assessee has advanced funds to its subsidiary and the subsidiary has gone into liquidation then the funds advanced to such subsidiary must be treated as a business loss if they are advanced on the grounds of commercial consideration and commercial expediency. (AY. 2014-2015)
Dy. CIT v. Pioneer Investcorp Ltd. (2019) 72 ITR 376 (Mum.)(Trib.)
S. 28(i) : Business loss-Advance to subsidiary-Subsidiary has gone to liquidation-Loss is allowable as business loss. [S. 2(13), 37(1)]