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2015 (7) TMI 1411 - ITAT CHENNAIExpenditure incurred on education of the children of the Directors - Allowable revenue expenditure or not? - HELD THAT:- It is not in dispute that the assessee incurred expenditure on higher education and foreign tours of the grandchildren/children of the Directors. As rightly submitted by the Ld. D.R., it is the responsibility of the parents/ grandparents to give education to their children/grandchildren. No business purpose is going to be served to the assessee by incurring expenditure on the foreign education of the children and grandchildren of the Directors. Merely because the company was in existence for decades, the law laid down by the jurisdictional High Court in RKKR Steels P. Ltd. [2001 (11) TMI 20 - MADRAS HIGH COURT] and in K. Subramaniam Bros [2000 (12) TMI 67 - MADRAS HIGH COURT] would not change. This Tribunal is of the considered opinion that the law laid down by Madras High Court in RKKR Steels P. Ltd. (supra) and in K. Subramaniam Bros (supra) is squarely applicable to the facts of the case. Therefore, this Tribunal do not find any infirmity in the order of the CIT(Appeals) and accordingly, the same is confirmed. Disallowance u/s 14A - expenditure relatable to earning of dividend disallowed - HELD THAT:- As rightly submitted by the Ld. D.R., AO on the basis of the statement of account called upon the assessee to show cause why the expenditure relatable to earning of dividend should not be disallowed. This clearly shows that the Assessing Officer is not satisfied with the claim of the assessee on the basis of the books of account. Therefore, it would not be correct to say that the Assessing Officer is not satisfied with the correctness of the account. Rule 8D came into operation by Finance Act, 2009, which is mandatory for computation of disallowance under Section 14A of the Act. Therefore, this Tribunal do not find any reason to interfere with the order of the CIT(Appeals) and accordingly, the same is confirmed. Assessee appeal dismissed.
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