9911796707
TMI Blog2023 (6) TMI 341X X X X Extracts X X X X X X X X Extracts X X X X ..... trader with no presence outside India and its Director was already a graduate in management, no sufficient basis has been brought on record to show how the financial support provided by the assessee to its Director to pursue MSc in International Business Management is wholly and exclusively for the assessee s business purpose and has a direct relationship with the assessee s business activity. Since, in the present case, the assessee has failed to substantiate that the expenditure was incurred wholly and exclusively for the purpose of business, therefore, we find no infirmity in the impugned order affirming the disallowance of the Director s education expenditure u/s 37(1) - Appeal by the assessee is dismissed. - ITA no.544/Mum./2023 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se attended, the benefit derived by the company from such course, bank statement reflecting such payments, certificate of completion of such course, etc. On perusal of the details, it was observed that expenses were incurred for the further study of Mr. Harsh Dhami, Director from the Royal Holloway University of London. In support of its claim, the assessee submitted that the course was sponsored with the condition that Mr. Harsh Dhami will work for at least 5 years for the assessee company. Therefore, it was claimed that the expenses are allowable as business expenditure under section 37(1) of the Act. The Assessing Officer ( AO ) vide order dated 29/02/2016 passed under section 143(3) of the Act did not agree with the submissions of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ursue the postgraduation in Marketing. It is the plea of the assessee that the financial support by the assessee company was subject to the condition that Mr. Harsh Dhami will serve the company for a minimum period of 5 years after completing the study and shall be part of the company s growth and increasing the sale. Since one of the subjects was pertaining to Digital Business and Marketing as per the brochure of the postgraduate program, i.e. MSc in International Business Management conducted by Royal Holloway University of London, the assessee claimed that the course was for the benefit of the assessee company and thus expenditure was incurred wholly and exclusively for the purpose of business. 6. From the perusal of the said brochure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ative ( learned AR ) has placed reliance upon the statement reflecting sales and developments made by Mr. Harsh Dhami, forming part of the paper book from pages 27-32. It was submitted that with the help of Mr. Harsh Dhami, the assessee has achieved a total sales volume of Rs. 2,68,41,196 from the period 01/08/2014 to 10/02/2016. From the perusal of the same, it appears to be the normal growth in sales of the assessee in two years and not any exponential growth due to the Director having a postgraduate degree from London. It is evident from the financial statement for the year under consideration that the assessee s Revenue from operations is Rs. 8,03,55,513. Further, there is no evidence on record to show how the Director implemented his e ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
