1993 (9) TMI 42 - HC - Income Tax

Business Expenditure Carrying On Business Expenditure Incurred Nexus Between Expenditure And Business

Summary

The High Court of Bombay ruled that the expenditure of Rs. 60,678 for management training of a partner was not an allowable deduction in determining business profits for the assessment year 1978-79. The court found no nexus between the expenditure and the business of the assessee, agreeing with the Income-tax Officer and Commissioner of Income-tax (Appeals). The question was answered in favor of the Revenue and against the assessee.