Assessee claimed loss on account of permanent diminution in value of investment made in equity shares in one of its subsidiaries in USA. Assessing Officer disallowed the loss on the ground that loss was not allowable under section 37(1) since expenditure could not be considered as revenue expenditure. On appeal the Tribunal held that the expenditure allowable as revenue expenditure. On appeal by Revenue the Court held that investment was made in subsidiary company in order to expand business with view to earn higher profit. Order of Tribunal was affirmed. (AY. 2012-13)