On failure to acquire a Singapore-based entity through its wholly-owned subsidiary, the assessee wrote off loss towards expenditure incurred to acquire the company. The assessee would have benefitted from the acquisitions, as there was a possibility of increased business and better trading results. Thereby, the assessee would run the business more smoothly and profitably. The Tribunal noted that the investment was made to increase the business, and the investment was not to acquire manufacturing or infrastructural capacity but to boost assessee sales. Hence, the loss suffered by the assessee is rightly written off. (AY. 2011-12, 2013-14)