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TMI Blog2020 (4) TMI 529X X X X Extracts X X X X X X X X Extracts X X X X ..... me as not incurred wholly and exclusively for the purpose of the profession of the appellant. 3. Briefly stated, the facts of the case are that the assessee is an advocate by profession and is a designated Senior Advocate of the Hon'ble Supreme Court of India and is deriving income from business or profession, income from house property, income from capital gain and income from other sources. 4. During the course of scrutiny assessment proceedings, the Assessing Officer noticed that the assessee has claimed Rs. 19,53,500/- under the head 'Scholarship Expenses'. The assessee was asked to explain why the Scholarship debited in the profit and loss account should not be added back to the income of the assessee. 5. In his reply, the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has expressed a desire to extablish an annual scholarship, linked to an Oxford University Clarendor Award tenable at Exeter College, Oxford. The Gift Mr Salve has committed to providing annual funding for a scholarship of Rupees XX lakh (Rs. XXXX/-) per annum, increasing each year in line with inflation arid-worth the full recommended living allowance for a graduate student at Oxford University. His annual gift will be received in the College's account on or before 1st September of each year, The College's account details are: Bank: Barclays Bank Plc Swift Code : BARC GB22 Sort Code : 20-65-18 IBAN: GB95barc20651890375799 Account Number : 90375799 Account Name: The Bursar, Exeter College Reference: SALVE The Scholarship T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Scholarship will not be awarded." 11. It is an undisputed fact that the appellant is a well known Supreme Court Lawyer. The agreement with Exeter College, the University of Oxford, exhibited hereinabove, is self-explanatory. We find that on identical circumstances, the co-ordinate bench in assessee's own case for Assessment Year 2011-12 [supra], had the occasion to consider a similar disallowance and came to the conclusion that such disallowance cannot be sustained and directed the Assessing Officer to delete the same. The relevant findings of the co-ordinate bench read as under: "13. We have carefully considered the rival contention and perused the orders of the lower authorities. Issue involved in this appeal is whether the expendit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is necessary or not for the business of the assessee. Thus, allowability of expenditure should always be judged from the mindset of the assessee. The AO cannot put his thinking to say that the expenditure incurred by the assessee is not wholly and exclusively incurred for his profession, unless, he brings his level of thinking to the level of the professional, like assessee. The requirement of incurring the expenditure by a professional/businessman changes by the changes in the dynamics of the business, its complexities and its uniqueness. The level at which the assessee is carrying on the profession, perhaps, he might not have thought it proper to increases visibility by attending the conferences, seminars et cetera. He has differ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the routine day-to-day expenditure incurred by the assessee for promoting his professional profile. These expenditure cannot be held to be capital expenditure in nature as no fresh new fixed assets is created by paying the scholarship sum. Further merely because in the agreement it is mentioned as an annual gift in the form of scholarship, it does not become a gift. In fact, it is the expenditure incurred by the assessee in furtherance of his business. While issue arose before coordinate bench in case of another professional firm in ITA number 1382/Del/2012 for assessment year 2009 - 10 wherein substantial contribution was made for a building of an association which promotes the study of taxation. The coordinate bench held that such expend ..... X X X X Extracts X X X X X X X X Extracts X X X X
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