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TMI Blog2015 (4) TMI 547X X X X Extracts X X X X X X X X Extracts X X X X ..... would improve the services, which the assessee is giving to its patients. It is in this context, the sum of ₹ 5,00,000/- is spent. That is not in dispute. After acquiring the degree, she has come back and she is working with the assessee. She was paid ₹ 20,000/- per month as salary, before she was sent to higher education and after returning she is being paid ₹ 30,000/- per month. Merely because she happens to be the daughter of the Managing Director and the Chief Executive, it cannot be said that the money is spent by her parents out of love and affection for higher education of their daughter. She was an employee of the assessee, in the field, in which, she has acquired degree. They wanted her to specialize in Radio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of her studies. It is not in dispute that after successful completion of studies, she has come back and working in the said assessee - company. She was paid a sum of ₹ 20,000/- per month as salary before she was sent for higher studies. After returning, she is being paid ₹ 30,000/- per month. The Assessing Authority dis-allowed the assessee s claim on the ground that the expenditure incurred by the father, of his natural love and affection for his children, meeting the cost of their education cannot become a business expenditure, merely because he is the owner or Director of the business in which, the son or daughter subsequently takes part. 3. Aggrieved by the said order, the assessee preferred an appeal to the Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s (P) Ltd., reported in (2011) 238 CTR (Kar) 76. After noticing Section 37(1) of the Act, it was held as under at paras 8 and 9: 8. Thus, once the expenses incurred is not a capital expenditure or an expenditure incurred for personal expenses of the assessee or the said expenditure is for which is not an offence or is not prohibited by law and was not spent in advertising in any souvenir, brochure, tract, pamphlet or the like published by a political party, the assessee is entitled to the benefit of deduction under Section 37 of the Act. In other words, the money spent by an assessee either in sponsoring a student or towards educational expenses of a student in a discipline, in which the assessee is carrying on its business, is a valid e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng circumstances, we are satisfied that the amount expended by the assessee is not a devise to avoid payment of tax or reduce payment of tax and this expenditure is a bona fide in that view of the mater, we do not find any merit in these appeals. 6. In the instant case, before expenditure was incurred, the daughter had acquired a degree in medicine. She was employed. Apart from the fact that she is the daughter of the Managing Director and the Chief Executive, she was an employee of the assessee. She was sent outside the country for acquiring higher educational qualification, which would improve the services, which the assessee is giving to its patients. It is in this context, the sum of ₹ 5,00,000/- is spent. That is not in dispu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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