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2022 (8) TMI 674 - AT - Income TaxPersonal expenditure - Disallowance of expenses relatable to medical treatment of one of the Director’s wife - allowable revenue expenses or not? - HELD THAT:- Issue decided against assessee as in its own case [2022 (8) TMI 595 - ITAT CHENNAI] wherein held that there should be expectation by the employee for payment of medical expenses. The sum of money was expended on the ground of commercial expediency and in order to facilitate indirectly the carrying on of the business of the assessee. If any one of the tests was not satisfied that medical expenditure incurred on by an employee should not be allowed as a valid business expenditure in the hands of the assessee under section 37 - Based upon the above points, the High court held that the expenditure in connection with the payment of Medical expenses met out by the company even though, the same had been spelt out in the letter of appointment cannot be regarded as sufficient for treating the expenditure as business expenditure. In view of the above decision of the Hon’ble Madras High Court in the case of CIT v. TIAM House Service Ltd [1998 (11) TMI 45 - MADRAS HIGH COURT] wherein, the decision of the Hon’ble Supreme Court was followed. We are of the view that these expenses incurred towards medical expenses of the relative of the Director of the assessee company in foreign currency are personal in nature and not in relation to any business connection. Hence, the lower authorities have rightly disallowed the same and we confirm the same. - Decided in favour of revenue.
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