TMI Blog2022 (8) TMI 674X X X X Extracts X X X X X X X X Extracts X X X X ..... siness expenditure in the hands of the assessee under section 37 - Based upon the above points, the High court held that the expenditure in connection with the payment of Medical expenses met out by the company even though, the same had been spelt out in the letter of appointment cannot be regarded as sufficient for treating the expenditure as business expenditure. In view of the above decision of the Hon ble Madras High Court in the case of CIT v. TIAM House Service Ltd [ 1998 (11) TMI 45 - MADRAS HIGH COURT] wherein, the decision of the Hon ble Supreme Court was followed. We are of the view that these expenses incurred towards medical expenses of the relative of the Director of the assessee company in foreign currency are personal in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the business of the company and hence ought to have sustained the addition made by the Assessing officer. 4. The CIT(A) ought to have given an opportunity of being heard to the Assessing officer under rule 46A before admitting additional evidences in the form of terms of employment based on which allegedly the medical expenses of the family member was incurred by the company. 3. Brief facts are that during the relevant financial year 2008-09 relevant to assessment year 2009-10, the assessee claimed medical expenses of Rs.1,53,82,792/- incurred in respect of one Mrs. Shrimathi Mahesh, wife of Shri Mahesh, Director of the company. According to AO, the issue is covered by the decision of Hon ble High Court of Madras in the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e through the facts and circumstances of the case. We noted that this issue has been decided by the Hon ble Madras High Court in the case of CIT v. TIAM House Service Ltd. (supra), wherein, the following question was decided: Whether, on the facts and in the circumstances of the case, the Income tax Appellate Tribunal was right in holding that the medical expenditure to the extent of Rs.2,54,994/- incurred on by an employee should be allowed as a valid business expenditure in the hands of the assessee under section 37 of the Income tax Act, 1961? The Hon ble Madras High Court relied on the decision of the Hon ble Supreme Court in the case of Gordon Woodroffe Leather Manufacturing Co. v. CIT reported in [1962] 44 ITR 551, where ..... X X X X Extracts X X X X X X X X Extracts X X X X
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