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2004 (10) TMI 595 - ITAT MUMBAIDisallowance of 'study and training expenses' - ‘vehicle expenses’ - ‘entertainment expense’ - HELD THAT:- In assessee’s submissions before us, it was stated that ‘though not an employee’ Shri Rishav Mehra was rendering services to the assessee-company in the USA. However, there is no material to support, or even indicate, that Shri Rishav Mehra rendered any services from the USA. We have also noted that the assessee has categorically accepted that Shri Rishav Mehra was not an employee of the assessee-company. Keeping all these factors in mind, as also entirety of the case, we approve the conclusions arrived at by the CIT(A) and decline to interfere in the matter. The expenses incurred on the foreign education of Shri Rishav Mehra, whose only connection with the assessee-company at the relevant point of time was that he was son of the Managing Director of the company, cannot be allowed as deduction in computing business income of the assessee- company. We see no infirmity in CIT(A)’s sustaining the said disallowance. Ground No. 1 is thus dismissed. Vehicle expenses - The disallowance has been confirmed by the CIT(A) treating the expenses as personal expenses. But then, a company is an artificial juridical person, and, therefore there cannot be any personal expenses in the case of the company. This is so held in the judgment of Hon’ble Gujarat High Court in the case of Sayaji Iron &; Engg. Co. v. CIT [2001 (7) TMI 70 - GUJARAT HIGH COURT] which has also been followed by a number of Benches of the Tribunal, including by the Ahmedabad Bench in the reported case of Dy. CIT v. Mira Industries [2003 (4) TMI 220 - ITAT AHMEDABAD-A]. Thus, we direct the Assessing Officer to delete the impugned disallowance. The assessee will get the relief to that extent. Ground No. 2 is thus allowed. Entertainment expenses - We find that it is an undisputed position that the canteen expenses were incurred for the purpose of staff members and managers of the company but the objection is taken by the revenue that the outsiders being provided the tea and snacks from the same canteen cannot be ruled out. The revenue has failed to discharge the onus of demonstrating that the suo motu disallowance offered by the assessee is lesser than what is required. In the earlier years also, no such additional disallowance was made by the Assessing Officer. The CIT(A) has also confirmed the disallowance in a somewhat mechanical manner and without marshalling out the relevant facts. Keeping in view all the factors, as also entirety of the case, we direct the Assessing Officer to delete the additional disallowance. The assessee will get relief on this issue also. Ground No. 3 is thus allowed - In the result, the appeal is partly allowed.
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