9911796707
TMI Blog2019 (2) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... f will confer assurance on any scrutinizing mind that as far as possible the result of the training utilized for the benefit of the assessee. We find that Miss Parulekar was in the Editorial Department of the said company and in pursuance of resolution acquired a degree of Master of Journalism in the same field and spent three months practical training in printing and lithography itself shows that she acquired a degree in the same field and undertaken specific practical training in her own Department. Whereas in the present case as discussed above, the said Sh. Anurag Singhi acquired additional knowledge which is not relevant or directly related to business of the assessee. Therefore, the facts before the Hon’ble High Court of Bombay are different from the facts of the present case and are distinguishable - as discussed above, no evidence whatsoever brought on record to show that the assessee really pursued degree and such degree really benefited the assessee. Income from properties as income from other sources against the claim of the assessee is from house property - Held that:- It is noted from the record that the assessee has two properties, one in Delhi and one in Mumbai. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n business or profession of the assessee and disallowed the same by adding to the total income of the assessee. It is noticed from the written submissions as filed before the CIT(A) wherein it was contended that the payment of membership fee to Jain Vishva Bharati helps the assessee to get bright and meritorious students from the said institution to do their internship which in turn help the assessee to carry on day to day business. 5. The CIT(A) held the submissions are general in nature and futile exercise in trying to build a link between the assessee and the said institution. Before us, the same submissions as contended before the CIT(A) were advanced. We find no details showing in support of its calculation that the bright or meritorious students pursued Articleship and payment of membership fee was really patronized, the services of the assessee were filed and in the absence of such details, in our opinion, the assessee is not entitled to claim the deduction in computing the total income. We agree with the findings of lower authorities that the said expenditure is not incurred for the business or profession of the assessee and submission made in support of such arguments a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r before the authorities below except contract dated 05.10.2008 for education cost, partnership agreement dated 01.12.2007 and supplementary partnership dated 01.04.2009 at pages 09 to 19 of the Paper Book respectively. But, no such evidence was filed to show that Sh. Anurag Singhi pursued MBA , joined assessee thereafter, and business of the assessee increased due to having a degree in management course. The business network developed by Sh. Anurag Singhi by becoming a MBA from I.E. Business School and the additional business generated in the areas of Finance and Business Advisory Focused services. In the absence of which, we are unable to give credence to the submissions made before the two lower authorities and also before us. 10. Regarding the decision of Hon ble High Court of Allahabad in the case of CIT vs U.P.Asbestos Ltd.(supra), the facts therein are that the assessee is a company engaged in the manufacture and sale of Asbestos sheet and allied products, wherein a son of a Managing Director pursued higher education and training in USA in pursuance to an agreement that after coming back from USA, the son of the said Director would join the company as Director. The AO hel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... right in finding it as capital asset as confirmed by the CIT(A). Therefore, the decision has placed reliance by the Ld.AR is not applicable to the facts and circumstances of the present case. 12. Further, the decision of Hon ble High Court of Bombay in the case of Sakal Papers Pvt.Ltd. (supra). The assessee therein is a Private Limited Company having engaged in publishing a leading Marathi Newspaper in Poona. The said company was closely held company by two shareholders i.e. parents of Miss Leela Parulekar who was an apprentice and holds a degree in Master of Arts in Poona University with English French as special subjects. In pursuance of resolution passed by the assessee that Miss Leela Parulekar attended the Graduates School of Journalism at Columbia University in New York and obtained a degree and thereafter, spent three months practical training in printing and lithography. On returning from USA, Miss Parulekar joined the Editorial Department of the assessee. The AO disallowed the said expenditure incurred by holding as it was not incurred for the assessee s business but was only an amenity granted to a relation of the Directors. The First Appellate Authority agreed wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon ble Supreme Court in the case of Raj Daddarkar Associates (supra). 15. Ld.DR reported no objection. In view of the same, we remand the matter to the file of the AO for his fresh adjudication. The assessee is liberty to file evidence, if any, in support of his contention. Thus, Ground No.3.1 is allowed for statistical purposes. 16. Ground No.3.2 is relating to challenging the action of the CIT(A) in not allowing the depreciation as per the provision of the Act relating to the above said properties. In view of the decision rendered in Ground No.3.1 above, we are of the view that the issue raised in Ground No.3.2 is relating to the issue raised in Ground No.3.1. Therefore, we deem it proper to remand the matter to the AO for his fresh adjudication. 17. Ground No.4 is relating to confirmation of disallowance as per provisions of section 40(a)(i) of the Act on account of annual support payment and registration fee. 18. Heard both parties and perused the material available on record. The assessee debited an amount of ₹ 2,08,234/- as payment to Horwath International. The assessee explained the said payment was the share of said party earned from the clients refere ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
