9911796707
TMI Blog2014 (7) TMI 1084X X X X Extracts X X X X X X X X Extracts X X X X ..... ee is an Advocate by profession. He filed returns for the year under consideration viz. Assessment year 2005-20006 on 29.12.2005, declaring total income at Rs. 3,70,230/-. Perusal of the details alongwith the Returns, the Assessing officer noted that deduction of Rs. 22,25,614/- was claimed by the assessee as expenditure incurred for higher education expenses for his daughter Hemali. The justification was that she joined the Appellant's firm of Advocates. She gave an undertaking that on attaining higher qualification and degrees from the University abroad, she would come back and join the firm for a minimum period of five years, and therefore, as a part of the firm, being an employee, she was encouraged to go abroad to obtain higher edu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ord anything and particularly the scheme so as to provide higher education abroad to the employees or associates. The Commissioner of Income Tax (Appeals) has observed that in the firm of the appellant - assessee, there were at least 14 associate advocates and none were given an opportunity to go abroad prior for higher education. Some of them have worked with him for at least 15 years. In the present case within a period of 2 to 3 months after the daughter became an Advocate and joined the firm as Associate, she went abroad. The Appellant may have then stated that there was an undertaking signed or bond given to serve the firm for five years after return. But the Authorities found that not only she was allowed to continue and stay abroad, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onship with the Directors of the Company. It was disallowed on two other reasons which are not found to be germane and relevant for such dis-allowance. It is in these circumstances that this Court laid down the principle that merely because there was no commitment or contract or bond taken from the trainee, the expenditure which was otherwise proper, cannot be disallowed to the company, particularly when as a result of that expenditure the trainee had secured both a degree and training which would be of assistance to the company. She was, in fact, found to be serving the company on her return to India. These peculiar facts and circumstances must be seen while applying the ratio or principle laid down in the case of Sakal Papers (P.) Ltd. (s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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