Expenditure towards scholarship to a student not associated with company not allowable

VIC Enterprises Pvt. Ltd. Vs ACIT (ITAT Delhi) ITAT Delhi held that the scholarship to a student who was neither an employee nor associated with the company for any commercial or business purpose doesn’t satisfy the provisions of section 36 and section 37 and hence not allowable as deduction. Facts- The assessee is one of the holding companies of Dabur India Ltd. and is also an NBFC carrying on its business of financing and investment. AO disallowed the total interest paid amounting to Rs. 4,68,52,493/- on the ground that the assessee had made various interest free advances. Had the assessee...