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TMI Blog2014 (5) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... he company for studies of Whole Time Director on the ground of non-business purpose." 2. The Ld. CIT(A) erred in fact and in fact and in law in confirming the action of the Assessing Officer in making addition of Rs. 78,386/- being TDS written off by the appellant." 3. Ground no. 1 relates to disallowance of 33,95,589/- being educational expenses of director. 4. AO during the assessment proceedings observed that assessee debited an amount of Rs.33.66 lacs towards whole time director's foreign education expenses. The assessee was requested to furnish details and nature of these expenses with explanation as to how these are allowable expenses with supporting evidence. It was submitted that assessee sponsored MBA studies of whole time direc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he decisions relied upon by the appellant are distinguishable on facts as in those cases the expenditure was in relation to employees who had displayed skills relevant for the business. Ground No. 2 is dismissed." 7. Before us learned counsel of the assessee placed reliance on the following decisions and reiterated the submission made before the lower authorities:- i). Order of Hon'ble ITAT, Ahmedabad in case of Mazda Ltd ITA No. 3190/Ahd/2008 ii). Judgment of Hon'ble Karnatka High Court in case of Ras Information Technology (P) Ltd. 12 taxmann.com 158 iii). Order of Hon'ble ITAT Mumbai in case of J.B. Advani & CO Ltd. Ld. DR on the other hand beside placing reliance on the orders of lower authorities also tried to defend the orders of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies with J.L. Kellogg School of Management Northwestern University, USA The chairman placed before the Board a proposal Shri Srivardhan Goenka Whole-time Director of the Company has perused of first year of his MBA at the World renowned Kelogg School of Management North West University of USA. The Managing Director has proposed that it will be immensely beneficial to the Company if Shri Shrivardhan Goenka completes the course by perusing the second year curriculum. It is proposed to sponsor Shri Shrivardhan Company shall provide financial support to the extent of approx US$ 93,500 ( University Tuition Fees, Boarding and Lodging, Travelling, Insurance etc) toward study and expenses to Shri Shrivardahn Goenka. The Board discussed the matter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tco Export Pvt. Ltd vs. CIT 345 ITR 188 assessee incurred expenditure on education of its director abroad. This expenditure was not held to be allowable as business expenditure by the Hon'ble High Court in the absence of any bond executed by director that he would work for assessee after completing her studies. While in this case there is an agreement between the director and the company that director will work for two years after completing his studies and there is no dispute that he worked for those two years with the assessee. Facts being different the ratio of that case is not applicable to this case. Similarly in another judgment of Hon'ble Delhi High Court in the case of Shashi Bhushan vs. CIT assessee lawyer incurred certain expendit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was disallowed by AO. 11. Before Ld. CIT(A) submission of the assessee was that TDS amount was receivable for assessment 1991-92 and 1993-94 and the asssessee had offered gross income to tax but the credit for TDS was not claimed for non-receipts of TDS certificate. Since the TDS certificates were not received, it was decided to write off this amount as the same was allowable u/s. 28. Ld. CIT(A) however confirmed the action of AO. Before us revenue has relied on the decision of ITAT Mumbai Bench in the case of Ricoh India Ltd vs. DCIT [2013] 38 taxmann.com 264 which is squarely applicable to the facts of this case in favour of revenue and against assessee which is clear from the following head note of that case:- "V. Section 40(a)(ii), r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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