2009 (6) TMI 596 - HC - Income Tax

Business Expenditure - disallowance education expenses incurred in respect of a trainee during the course of the appellant s business Trainee was Director s son - expenditure incurred has no nexus with the business of the appellant and the same cannot be allowed under section 37(1) of the Act appeal dismissed

Summary

The case of V. D. Doshi & Co. v. Income Tax Appellate Tribunal involves an appeal regarding the disallowance of education expenses incurred by the appellant company. The son of one of the directors was sent abroad for studies, and the company claimed these expenses as business-related. The senior counsel for the appellant argued that the expenses were in line with the company's business, while the Revenue's counsel contended that the expenses were not justifiable. The court examined the facts and found that the son was not appointed as a trainee through a proper selection process, and the expenses were incurred due to his familial relation with the director. The court upheld the decision of the authorities below, dismissing the appeal for lack of substantial legal question.