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2020 (4) TMI 736 - AT - Income TaxAllowable revenue expenditure u/s 37 - training charges incurred on non-executive director - HELD THAT:- Shri Jashan Bhumkar completed the higher education with the financial assistance of the assessee company and assessee company had incurred the education expenditure for the last year of graduation and Shri Jashan Bhumkar was working in the company as non-executive director at the time of availing the above benefit. The company has decided to approve the above expenditure by passing a resolution in this regard and entered into an education sponsorship agreement. As per the above agreement Shri Jashan Bhumkar has to work with the assessee company for a period of 3 years in return for the above said sponsorship. Assessee has sponsored the education of son of the M.D. What is relevance, whether the person who was sponsored, is relevant for the existing business and whether the business benefitted. If it is yes, then it is valid business expenditure and respectfully following the aforesaid decisions which is applicable mutatis mutandis in the present case, we are inclined to accept the submission of Ld. AR. Accordingly, we allow the grounds raised by the assessee.
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