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2012 (9) TMI 1021 - HC - Income TaxExpenditure incurred by the Assessee company on foreign education and travel of son of the Managing Director of the Company - Allowable business expenditure - Held that:- The purpose of Section 40A is to prevent the abuse of fund by the company for personal interest. There should be dividing line between personal interest and the interest of the company. A personal interest means the expenditure incurred not for the purpose of company but for own interest of the office bearers of the company or their sons and relatives but in case an expenditure is incurred by the company to send someone for training or higher education and after returning back in pursuance to contractual obligation, such person joins the company itself, then in such circumstances, it may not be treated as expenditure for personal reason because of relationship with an office bearer. The expenses incurred should be for the purpose of the company which has been benefitted because of training and higher education imparted to the person concerned. - Decided in favour of assessee
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