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2015 (4) TMI 547 - HC - Income TaxDisallowance of expenditure spent for the education of Dr.Gauri Sriram - daughter of the Managing Director - whether disallowance is justified as the said amount spent on her did not accrue any benefit to the assessee company? - Held that:- In the instant case, before expenditure was incurred, the daughter had acquired a degree in medicine. She was employed. Apart from the fact that she is the daughter of the Managing Director and the Chief Executive, she was an employee of the assessee. She was sent outside the country for acquiring higher educational qualification, which would improve the services, which the assessee is giving to its patients. It is in this context, the sum of ₹ 5,00,000/- is spent. That is not in dispute. After acquiring the degree, she has come back and she is working with the assessee. She was paid ₹ 20,000/- per month as salary, before she was sent to higher education and after returning she is being paid ₹ 30,000/- per month. Merely because she happens to be the daughter of the Managing Director and the Chief Executive, it cannot be said that the money is spent by her parents out of love and affection for higher education of their daughter. She was an employee of the assessee, in the field, in which, she has acquired degree. They wanted her to specialize in Radiological Investigations and therefore, she was sent abroad for acquiring the knowledge. After acquiring the additional knowledge, she has come back and she is working with the assessee. Therefore, there is a direct nexus between the expenses incurred towards her education, with the business, which the assessee is carrying on. See CIT Versus Ras Information Technologies (P.) Ltd. [2010 (7) TMI 670 - KARNATAKA HIGH COURT ]- Decided in favour of the assessee
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