2023 (6) TMI 341

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 2. In this appeal, the assessee has raised the following ground:- "The appellant prays to allow the sum of Rs. 23,43,447, being directors education expenses as wholly and exclusively incurred for the purpose of business." 3. The brief facts of the case as emanating from the record are: The assessee is a company and is engaged in the business as importer and exporter of bearings and components. For the year under consideration, the assessee filed its return of income on 21/09/2013 declaring a total income of Rs. 49,04,500. The return filed by the assessee was selected for scrutiny and statutory notices under section 143(2) as well as section 142(1) were issued and served on the assessee. During the assessment proceedings, the assessee wa .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... "wholly and exclusively" for the business purpose to be allowed under section 37(1) of the Act. Accordingly, the AO disallowed the education expenses to the tune of Rs. 23,43,447 claimed by the assessee. 4. The learned CIT(A) vide impugned order dismissed the appeal filed by the assessee by placing reliance upon the decision of the Hon'ble Karnataka High Court in Mac Explotec Pvt. Ltd. v/s CIT, [2006] 286 ITR 378 (Karn.). Being aggrieved, the assessee is in appeal before us. 5. We have considered the submissions of both sides and perused the material available on record. The only dispute raised by the assessee in the present appeal is against the disallowance of the Director's education expenses. As per the assessee, Mr. Harsh Dhami was a .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ess as an importer and exporter of bearings and components. It is also an accepted position that the assessee is not involved in any manufacturing activity. There is no material available on record that the assessee has any presence outside India. Further, Mr. Harsh Dhami was claimed to be already a graduate in management at the time of his appointment as Director of the assessee company. Therefore, in view of the above, when the assessee's business is merely in the nature of a 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 i .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X