TMI Blog2009 (6) TMI 596X X X X Extracts X X X X X X X X Extracts X X X X ..... "(a) On the facts and in the circumstances of the case and in law, whether the Tribunal was right in dismissing the appeal and thereby confirming the disallowance of Rs. 11,83,697 being education expenses incurred in respect of a trainee during the course of the appellant's business ? (b) On the facts and in the circumstances of the case and in law, whether the Income-tax Appellate Tribunal was right in holding that the expenditure incurred has no nexus with the business of the appellant and the same cannot be allowed under section 37(1) of the Act ?" Facts 3. The factual aspects reveal that the appellant is an engineering company manufacturing various engineering items like steel forgings, automobile components, various types of r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred were in relation to the appellant's business liable for deduction under section 37 of the Income-tax Act. In his submission, the Tribunal failed to appreciate that part of the education expenses incurred in the earlier assessment year were not disallowed although the assessment had been completed under section 143(3) of the Act. 8. Learned senior counsel submits that the judgment of this court in the case of Hindustan Hosiery Industries [1994] 209 ITR 383 was wrongly relied on by the authorities below. According to him, the said judgment is distinguishable on the facts. He placed heavy reliance on another judgment of this court in the case of Sakal Papers Pvt. Ltd. v. CIT [1978] 114 ITR 256 and tried to draw support from the said j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s difficult to appreciate that why the second letter was issued, when already a letter datedApril 25, 1996was holding the field. No evidence is on record to show that any other person at any point of time, either prior to 1996 or subsequent thereto till date was appointed as trainee or sent abroad for higher education. During the course of hearing, on being asked, we were informed that in the last 13 years, no other person was sent for training. 11. In the aforesaid backdrop, if the findings recorded by the Commissioner of Income-tax (Appeals) is read, one cannot find fault with the same. The findings in this regard read as under : "2.3 I have considered the submission of the appellant-company. To my mind, in the present case, the i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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