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TMI Blog2022 (8) TMI 674X X X X Extracts X X X X X X X X Extracts X X X X ..... ereinafter the 'Act') vide order dated 31.03.2015. 2. The only issue in this appeal of Revenue is against the order of CIT(A) deleting the disallowance made by the AO of expenses relatable to medical treatment of one of the Director's wife amounting to Rs.1,53,82,792/-. For this Revenue has raised following three effective grounds:- 2. The CIT(A) has erred in holding that no disallowance of Rs.1,53,82,792/- towards medical treatment aboard of Smt Mahesh, Wife of Shri Mahesh, whole time Director of the company in hands of the assessee. 3. The CIT(A) ought to have seen that the medical expenses incurred aboard for the spouse of the whole time director of the company is personal in nature and not incidental to the business of the company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e treated as perquisites u/s.17(2)(vi)(1) subject to the condition that the amount shall not exceed the extent permitted by the RBI. In any case, this has to be examined only in the hands of Shri Mahesh and no disallowance can be made in the hands of the company. I, therefore, direct the Assessing Officer to delete the addition. Aggrieved, Revenue came in appeal before the Tribunal. 4. Before us, the ld. Senior DR stated that the issue is covered against the assessee by Tribunal's decision in assessee's own case for the assessment years 2012-13 & 2013-14 in ITA Nos.2759 & 2760/Chny/2019 vide order dated 22.06.2022, wherein it is held as under:- 6.4 We have heard the rival contentions and gone through the facts and circumstances of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut in the letter of appointment cannot be regarded as sufficient for treating the expenditure as business expenditure. 6.5 In view of the above decision of the Hon'ble Madras High Court in the case of CIT v. TIAM House Service Ltd. (Supra), wherein, the decision of the Hon'ble Supreme Court was followed. We are of the view that these expenses incurred towards medical expenses of the relative of the Director of the assessee company in foreign currency amounting to Rs.9,74,968/- are personal in nature and not in relation to any business connection. Hence, the lower authorities have rightly disallowed the same and we confirm the same. Respectfully following the same, we set aside the order of CIT(A) and allow the appeal of the Revenue. 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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