2003 (3) TMI 58 - HC - Income Tax

Expenditure incurred on the education - persons have joined the company and, therefore, the assessee ought to have been granted the benefit. In the opinion of the court during the relevant year, the amount was spent not for the persons working in the company or as per any scheme prepared by the company, but for the outsiders and who were close relatives of the directors. We find no substance in the appeal and, therefore, the appeal stands dismissed.

Summary

The High Court of Delhi dismissed the appeal regarding the allowance of business expenditure on education for directors' children, stating that the expenses were for outsiders, not company employees. The court found no substance in the appeal for the assessment year 1993-94. The appeal was dismissed as no question of law arose.