TMI Blog2018 (12) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... s wherein serving employees of the assessee companies who even if related have been sponsored for higher education on the undertaking that on their return, they shall join the said concern. Similarly there are decisions wherein loans may have been advanced to the children of the employees/Directors, sent for higher education with an undertaking to return and rejoin the assessee company etc. where the loan advanced is deducted from the salary paid etc., thus there can be no blanket decision that the higher education expenses of the Director’s children necessarily are business expenses. The argument that similar expenditure has been allowed for the very same relative in the earlier year which though not demonstrated on facts but even if i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The ld. AR inviting attention to the written submissions extracted in para 4.1 by the CIT(A) submitted that the issue has been decided without referring to relevant facts. Reading from para 4.2 of the order, it was his submission that the CIT(A) has ignored the fact that in support of the expenditure copy of the Board Resolution passed in the meeting held on 15.03.2010 was available and the specific course for which the grand-son of the Director of the assessee's company had been sent, had also been mentioned therein. Apart from that, similar expenditure, amounting to almost ₹ 10 lacs odd for the education of the same relative of the Director, it was submitted, has been allowed by the Tax Authorities in the immediately preceding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Furthermore. Sh. Sumit Bansal, a Son of a Director Sh. Viiav Kumar Bansal is working with the appellant since April, 2013. A Proof of Factory Attendance Register and Monthly Salary/Wages Payment Register for the Month of April, 2013 and March, 2014 respectively is enclosed, substantiating the above fact. 3. The ld. Sr.DR, on the other hand, vehemently opposing the said prayer sought to place reliance upon the decision of the Hon'ble Mumbai High Court in the case of Sai Nath Motors. Copy of the said judgement though without citation was filed in the Court, it was his submission that without mentioning the specific qualification; the course or its utility in assessee's business, the education expenditure of the Director s g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent proceedings I am in complete agreement with the view of the assessing officer as the AO held that these expenses were incurred under the head of education sponsorship but are of purely of personal expenditure. The assessee has also, failed to prove that the expenditure was wholly and exclusively for the purpose of business. The reliance is placed on the decision in the case of NATCO exports Private Limited versus CIT 345 ITR 188 by honourable Delhi High Court. Wherein the honourable High Court has held that expenditure under section 37 is admissible only if the same is incurred wholly and exclusively for the purpose of business. Here in this case the appellant the appellant company has failed to discharge its onus to an established that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Learnt through the said course, so that Sh. Sumit Bansal could apply the same in creating value of the Organization. 4.1 On a reading of the finding of the CIT(A) which has been extracted in an earlier part of this order, it is evident that these submissions on facts have not been addressed by the CIT(A). Thus, we find that the conclusion arrived at in the impugned order wherein on facts the submissions are not addressed cannot be upheld. While so holding, we concur with the submissions of the ld. Sr.DR namely that all educational expenses of the children or grand children of the Directors of the companies who ultimately may also join the family business by itself, cannot be said to be an expenditure which can be said to have been in ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
