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TMI Blog2019 (3) TMI 811X X X X Extracts X X X X X X X X Extracts X X X X ..... f the learned advocates for the respective parties, the matter was taken up for final hearing. 4. By this petition under Article 226 of the Constitution of India, the petitioner has challenged the notice dated 31.3.2018 issued by the respondent under section 148 of the Income Tax Act, 1961 (hereinafter referred to as "the Act") seeking to reopen the assessment of the petitioner for assessment year 2013-14. Subsequently, during the pendency of the petition, the Assessing Officer has passed the assessment order on 23.10.2018 and, accordingly, the petitioner has amended the petition challenging the said order. 5. The petitioner had filed the original return of income for the assessment year 2013-14 on 28.9.2013 and had filed a revised return ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Such reasons came to be furnished by a letter dated 12.7.2018. Thereafter, the petitioner by a communication dated 27.8.2018 filed its objections. By an order dated 29.8.2018, the respondent disposed of the objections against the notice issued under section 148, by rejecting the same. 7. Mr. Manish Shah, learned advocate for the petitioner invited the attention of the court to the reasons recorded for reopening the assessment to point out that the Assessing Officer seeks to reopen the assessment on the ground that the assessee had debited Rs. 30,10,000/- on account of management training expenses incurred for post-graduate programme in management by Indian School of Business, Hyderabad, of Shri Swar Digant Shah, Director of the company, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted the details called for by the Assessing Officer, wherein, in paragraph 6 thereof, all details with regard to the management training expenses of Rs. 30,10,000/- debited in the profit and loss account during the year under consideration had been given. It was also stated that the company has benefitted a lot on account of the qualification obtained by the said Director, due to which, the turnover of the company had increased tremendously. 7.1 It was pointed out that further details had been submitted to the Assessing Officer by a communication dated 26.2.2016 in respect of the management training expenses of Rs. 30,10,000/- to indicate that the training expenditure was wholly and exclusively for the purpose of business. It was after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... FOR ISSUE OF NOTICE U/S. 148 OF THE ACT In this case, the return of income was filed on 28/09/2013 declaring total income at Rs. 64,36,610/-. The assessee filed revised return of income declaring total income Rs. 76,19,380/-. Assessment u/s. 143(3) of the Act was completed on 01/03/2016 determining assessed income at Rs. 76,19,380/-. 2. Security of Note 19 of profit and loss account revealed that the assessee had debited Rs. 30,10,000/- on account of management training expense the said expenditure were incurred for Post Graduate programme in management by Indian School of Business, Hyderabad of Shri Swar Digant Shah, Director of the company. The said expenditure is of personal nature and not allowable expenditure for business purpos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... during the course of regular assessment proceedings, the assessee had submitted details of expenses, however, it had not submitted any details proving the nexus between the expense of course fees and the relevance of the same wholly and exclusively for the business purpose. 11. In this regard, a perusal of the record of the case clearly shows that during the course of scrutiny assessment, the Assessing Officer called for various details from the petitioner, which had been furnished from time to time. Vide communications dated 19.2.2016 and 26.2.2016, the petitioner had furnished details in connection with expense of Rs. 30,10,000/- incurred towards management training expenses of the Director. In paragraphs 4 and 5 of the communication dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng with the company since three years i.e. April 2013 to till date and that he will at least work for further two years for the company. His training proves boon to the company in as much as the turnover of the company has increased considerably as can be seen from the table given in Para No.4. This proves that the training expenditure incurred for Shri Swar Digant Shah is wholly and exclusively laid out for the purpose of business. The assessee placed reliance on Delhi High Court judgment in the case of Kostub Investment Ltd. V/s. CIT 365 ITR 436 (Del)." 12. Thus, from the details furnished in the above communication, it is evident that the expense of Rs. 30,10,000/- incurred by the petitioner for the management training expenses of its D ..... X X X X Extracts X X X X X X X X Extracts X X X X
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