Quiz for the week (05 Jan 2026) :
Alex Ltd, Mumbai is engaged in manufacture of wearing apparels in India. It established a wholly owned subsidiary company in France a few years ago. Due to environment regulations the factory in France could not be operated. The assessee - company decided to close down the factory. The directors of the company decided to wind up the subsidiary company and the process would take some time up to May, 2026. The company decided to write off its investment in the wholly owned subsidiary by estimating the possible refund of its investment therein. The claim by way of write off would be Rs.180 lakhs. In other words, only 10% of the investment could be realized as refund of the investment. Is the claim of deduction allowable as business loss?
Share your thoughts on the above on or before 12th January, 2026.