Case Law Details
Indian Galvanics Cyrium Foils Ltd. Vs DCIT (Bombay High Court)
In the case in hand, Appellants-Assessee is a company manufacturing copper foils. Son of one of the directors was sent to USA for completing course in Business Administration which was ‘general’ in nature and had no direct nexus with the business activities of the Appellant-Assessee. Appellants did not place better particulars on record like, basic qualifcation of Mr. Harsh Kumar; subjects in which he did his administration course; how such subjects has-had nexus to business activities of Appellant and so on. Though a contract was placed on record whereby Mr. Harsh Kumar had agreed to render his services after completing his education and training, but that itself was not sufficient to hold that the Appellants- Assessee has proved nexus between the expenditure and its business activities.
FULL TEXT OF THE ITAT JUDGMENT
This Appeal under Section 260A of the Income-tax Act, 1961 (Act) is preferred by the Appellants-Assessee against the order dated 18.10.2001 (hereinafter referred to as ‘impugned order’) passed by the Income Tax Appellate Tribunal (Hereinafter referred to as ‘Tribunal’), Mumbai Bench ”A’, Mumbai in relation to Assessment Year 1997-98. The Appeal was admitted on 2.9.2014 on the following substantial question of law:
“ Whether the Tribunal erred in law in disallowing an amount of Rs.11,76,540/- as a business expenditure under the Income Tax Act, 1961 ? “
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