HASMUKH K SHAH, MUMBAI V. ADDL CIT RG 14(2), MUMBAI

ITA 2055/MUM/2013

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 1902 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 9 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-12-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: H
• Next Hearing Date: 03-08-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 14-03-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K MOHANDA S
• Keywords: Commercial expediency
• Section: 143(3); 37(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES H, MUMBAI BEFORE SHRI JASON P. BOAZ (AM) AND SHRI AMIT SHUKLA (JM) ITA NO. 2055 /MUM/2013 ASSESSMENT YEAR: 2009-10 SHRI. HASMUKH K. SHAH, DELUXE TRADING COMPANY, 18, 138/150, DADY SETH AGIARY LANE-1 MUMBAI- 400002. PAN : ABAPM4719K VS. THE ADDL. CIT RANGE- 14(2), AYAKAR BHAVAN, MUMBAI- 400020. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI. HIRO RAI RESPONDENT BY : SHRI. K. MOHAN DAS DATE OF HEARING: 09/12/2015 DATE OF PRONOUNCEMENT: 18/12/2015 O R D E R PER JASON P. BOAZ, AM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINS T THE ORDER OF THE CIT(APPEALS)-25, MUMBAI DT. 30/01/2013 FOR ASST. YE AR 2009-10. 2. THE FACTS OF THE CASE, BRIEFLY, ARE AS UNDER:- 2.1 THE ASSESSEE PROP. PRABHAT INDUSTRIES, ENGAGED IN THE BUSINESS OF MANUFACTURE OF COATED COTTON FABRICS FILED THE RETU RN OF INCOME FOR ASSESSMENT YEAR 2009-10 ON 18/09/2009 DECLARING TOT AL INCOME OF RS. 27,14,320/-. THE CASE WAS SELECTED FOR SCRUTINY AND THE ASSESSMENT WAS CONCLUDED U/S. 143(3) OF THE INCOME TAX ACT, 19 61 (IN SHORT THE ACT) VIDE ORDER DT. 21/11/2011 WHEREIN, THE INCOME OF THE ASSESSEE WAS DETERMINED AT RS. 38,51,641/- INTER-ALIA , IN VIEW THE DISALLOWANCE 2 ITA NO. 2055 /MUM/2013 ASSESSMENT YEAR: 2009-10 OF THE ASSESSEES CLAIM OF INCURRING EXPENDITURE ON EDUCATION SPONSORSHIP AMOUNTING TO RS. 10,09,526/-IN RESPECT OF AN EMPLOYEE, SHRI. AMIT SHAH, WHO IS A RELATIVE OF THE ASSESSEE. 2.2 AGGRIEVED BY THE ORDER OF ASSESSMENT FOR ASSES SMENT YEAR 2009- 10 DT. 21/11/2011, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(APPEALS)-25, MUMBAI. THE LD. CIT(A) DISMISSED THE ASSESSEES APPEAL VIDE ORDER DT. 30/01/2013, HOLDING THAT IN T HE LIGHT OF THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN KEEPING WITH T HE JUDICIAL PRECEDENTS ON THE POINT, THE ASSESSEES CLAIM, FOR ALLOWING DEDUCTION OF THE EXPENDITURE INCURRED ON FOREIGN EDUCATION OF AN EMPLOYEE AND HIS RELATIVE SHRI. AMIT SHAH, U/S 37(1) OF THE ACT AS I T WAS EXPENDED WHOLLY AND EXCLUSIVELY FOR THE PURPOSES OF BUSINESS , WAS NOT TENABLE. 3.1 AGGRIEVED BY THE ORDER OF THE LD. CIT(A)-25 MUM BAI, THE ASSESSEE HAS PREFERRED THIS APPEAL RAISING THE FOLLOWING GR OUNDS :- 1. THE LEARNED CIT (A) 25 ERRED IN WRITING WRONG F ACTS ABOUT RELATIONSHIP OF THE EMPLOYEE WITH THE ASSESSEE. 'TH E EMPLOYEE IS THE SON OF ASSESSEE'S FATHER'S BROTHER.' HE IS ACTUALLY THE SON OF THE' ASSESSEE'S FATHER'S BROTHERS SON'. THUS HE IS NOT C OUSIN BUT THE SON OF SECOND COUSIN. 2. THE LEARNED CRT (A) 25 ERRED IN HOLDING THAT THE NATURE OF EXPENSES IS PERSONAL & CAPITAL IN NATURE. 3. THE LEARNED CL'T (A) 25 ERRED IN NOT PROVIDING E NOUGH OPPORTUNITY TO PRESENT FACTS INSPITE OF SPECIFIC RE QUEST VIDE LETTER DATED 28TH JANUARY, 2013 AND INCORRECTLY RECORDING THE FOLLOWING:- 'EVEN OTHERWISE, IT IS NOT ESTABLISHED THAT EXPENSE S WERE PAID BY THE PROPRIETARY CONCERN OF THE ASSESSEE DIRECTLY TO THE UNIVERSITY AT ABROAD. IT APPEARS THAT FINANCING WAS MADE TO SHRI AMIT BY THE ASSESSEE.' 3 ITA NO. 2055 /MUM/2013 ASSESSMENT YEAR: 2009-10 4. THE LEARNED CL'T (A) 25 ERRED IN RECORDING INCOR RECT FACTS AND JUMPING TO SURMISES AND CONJECTURES BASED ON SUCH I NCORRECT FACTS. 5. THE LEARNED CRT (A) 25 ERRED IN JUMPING TO A CON CLUSION THAT THE TRANSACTION IS COLORABLE DEVICE WITHOUT CONSIDERING THE COMMON FACTS & APPRECIATING THAT THE SAID EMPLOYEE WAS WORKING W ITH THE ASSESSEE FOR TWO YEARS PRIOR TO GOING FOR EDUCATION LEAVE AND HAS COME BACK AND WORKED WITH THE ASSESSEE AND HELPED T RIPLE THE TURNOVER OF THE ASSESSEE IN A SPAN OF 3 YEARS. 6. THE LEARNED CIT (A) 25 ERRED IN NOT CONSIDERING THE LEGAL SUBMISSION AND CASE LAWS CITED BY THE ASSESSEE OF K ARNATAKA HIGH COURT CITATION 238 CTR PAGE 76. 7. THE LEARNED CIT(A) 25 ERRED IN NOT GIVING AN OPP ORTUNITY TO DISTINGUISH THE CASE LAWS CITED AGAINST THE ASSESSE E INSPITE OF SPECIFIC REQUEST. 8. THE LEARNED ASSESSING OFFICER ERRED IN MAKING AN ADDITION OF SCHOLARSHIP FOR EDUCATION OF RS.10,09,526/ - AND TH E LEARNED CIT APPEAL 25 ERRED IN INFORMING THE SAME. 3.2 FROM A PERUSAL OF THE GROUNDS RAISED(SUPRA), THOUG H NUMBERING 8, IT IS SEEN THAT THEY, ARE ALL IN RESPE CT OF THE SINGLE ISSUE OF THE DISALLOWANCE OF THE ASSESSEES CLAIM F OR ALLOWING EXPENDITURE OF RS. 10,09,526/- DEBITED TO THE PROFI T AND LOSS ACCOUNT UNDER THE HEAD SPONSORSHIP EDUCATION FOR ON E EMPLOYEE SHRI. AMIT P. SHAH, WHO IS A RELATIVE OF THE ASSESS EE (I.E. HE IS THE SON OF THE ASSESSEES FATHERS BROTHERS SON) 3.3.1 FROM THE FACTS ON RECORD, IT IS SEEN THAT IN THE COURSE OF ASSESSMENT PROCEEDINGS, THE AO OBSERVED THAT THE AS SESSED HAD CLAIMED EXPENSES OF RS. 10,09,526/- UNDER THE HEAD SPONSORSHIP EDUCATION IN HIS PROFIT AND LOSS ACCOUNT IN RESPECT OF AN EMPLOYEE 4 ITA NO. 2055 /MUM/2013 ASSESSMENT YEAR: 2009-10 SHRI. AMIT P. SHAH WHO IS A RELATIVE OF THE ASSESSE E. ON BEING ASKED TO JUSTIFY THE CLAIM, THE ASSESSEE SUBMITTED THAT THE SAME SHOULD BE ALLOWED U/S 37(1) OF THE ACT, ON GROUNDS OF COMMERCIAL EXPEDIENCY SINCE THE SAME WAS EXPENDED TO KEEP THE BUSINESS SECRETS SAFE FROM JOB HOPPING EMPLOYEES. IT WAS ALS O SUBMITTED THAT AFTER COMPLETION OF HIS FOREIGN STUDY, THE EMP LOYEE HAS SINCE RETURNED AND CONTINUES TO WORK WITH THE ASSESSEE. T HE AO REJECTED THE ASSESSEES REQUEST FOR ALLOWING THE AS SESSEES CLAIM FOR DEDUCTION OF THE AFORESAID EXPENSES U/S 37(1) O F THE ACT. 3.3.2 ON APPEAL, BEFORE THE LD CIT(A), THE ASSESSE E CONTENDED THAT THE AOS ACTION IS REJECTING ITS CLAIM WAS WR ONG AS THE SAID EXPENDITURE INCURRED ON THE EDUCATION OF SHRI. AMI T P. SHAH, WAS IN THE INTEREST OF THE BUSINESS. THE ASSESSEE ALSO REITERATED THE CONTENTIONS PUT FOR THE BEFORE THE AO THAT SHRI. AM IT P. SHAH WHO WAS EMPLOYED WITH THE ASSESSED BEFORE GOING ABROAD FOR STUDIES RETURNED AFTER COMPLETION OF THE FOREIGN STUDIES, AND CONTINUES TO WORK IN HIS EMPLOYMENT, LOOKING AFTER PRODUCTION AND MARKETING AND THAT THE TURNOVER OF THE BUSINESS AND THE OPERATIONAL EFFICIENCY OF THE ORGANIZATION HAS SI NCE INCREASED. IT WAS FURTHER SUBMITTED THAT THE ASSESSEE HAS INCURRE D THESE EDUCATION EXPENSES ON AMIT P. SHAH, TO INCREASE BUS INESS PROSPECTS AND BUSINESS EFFICIENCY AND THEREFORE, TH IS EXPENDITURE IS TO BE ALLOWED U/S 37(1) OF THE ACT. THE LD CIT(A ) AFTER CONSIDERING THE ASSESSEES SUBMISSIONS OBSERVED THA T THE EMPLOYEE, SHRI. AMIT P. SHAH WAS A RELATIVE OF THE ASSESSEE, AND THAT NO OTHER EMPLOYEE WAS EVER PROVIDED SUCH EDUCA TION SPONSORSHIP BY THE ASSESSEE. THE LD. CIT(A) NOTED T HAT THE FINANCING OF SHRI. AMIT P. SHAHS EDUCATION WAS NO T FOR ANY 5 ITA NO. 2055 /MUM/2013 ASSESSMENT YEAR: 2009-10 SPECIFIC PRODUCT/ PRODUCTION RELATED EDUCATION ABRO AD THAT HAD A DIRECT NEXUS WITH THE ASSESSEE'S BUSINESS OF MANUFA CTURE OF COTTON COATED FABRICS, FOR THE LOCAL MARKET BUT RAT HER WAS A DEGREE IN INTERNATIONAL BUSINESS FROM MACQUAIRE UNI VERSITY, SYDNEY, AUSTRALIA. BEING OF THE VIEW THAT THE SAID EXPENDITURE INCURRED AS EDUCATION SPONSORSHIP, NEITHER HAD ANY DIRECT NEXUS WITH THE ASSESSEES BUSINESS NOR WAS IT ESTABLISHED THAT IT WAS EXPENDED WHOLLY AND EXCLUSIVELY FOR THE BUSINESS OF THE ASSESSEE, THE LD.CIT(A), INTER-ALIA , FOLLOWING THE DECISION OF THE JURISDICTIONAL HIGH COURT IN THE CASES OF CIT VS. HINDUSTAN HOSIER Y INDUSTRIES (209 ITR 383) AND ECHJAY FORGINGS (328 ITR 286), D ISALLOWED THE ASSESSEES CLAIM. 3.4 BEFORE US, THE LD. AR REITERATED THE ARGUMENTS AND CONTENTIONS PUT FORTH BEFORE THE AUTHORITIES BELOW. IT WAS SUBMITTED BY LD. AR THAT THE JUDICIAL DECISIONS REL IED UPON BY THE LD. CIT(A) WERE NOT APPLICABLE TO THE CASE ON HAND. THE LD. AR PUT FORTH THAT THE CONCERNED EMPLOYEE ON WHOM THE E XPENDITURE FOR EDUCATION SPONSORSHIP WAS EXPENDED, WAS A RELAT IVE (I.E. ASSESSEES FATHERS BROTHERS, SONS, SON I.E. COUSIN S SON); THAT HE HAD JOINED THE ASSESSEES EMPLOYMENT IN NOVEMBER, 2005; THAT HE WORKED FOR MORE THAN A YEAR BEFORE BEING SENT AB ROAD FOR THE STUDY; THAT HE RETURNED TO HIS JOB WITH THE ASSESSE E AFTER OBTAINING A DEGREE IN INTERNATIONAL BUSINESS FROM M ACQUAIRE UNIVERSITY, SYDNEY, AUSTRALIA AND CONTINUES TO WORK WITH THEM, AND LOOKS AFTER THE PRODUCTION AND MARKETING ACTIVI TY WHICH HAS IMPROVED BUSINESS AND OPERATIONAL EFFICIENCY AND TH EREFORE, THE ASSESSEE CLAIM FOR EXPENDITURE ON FOREIGN EDUCATION OF SHRI. AMIT P. SHAH IS TO BE ALLOWED U/S 37(1) OF THE ACT. IN S UPPORT OF THE 6 ITA NO. 2055 /MUM/2013 ASSESSMENT YEAR: 2009-10 ASSESSEES CONTENTIONS, THE LD. AR PLACED RELIANCE ON THE FOLLOWING JUDICIAL PRONOUNCEMENTS:- (I) SAKAL PAPERS PVT. LTD. (114 ITR 256)(BOM) (II) MALLIGE MEDICAL CENTRE P. LTD. (375 ITR 522 (K AR) (III)KOHINOOR PAPER PRODUCTS (226 ITR 220) (MP) (IV) RAS INFORMATION TECHNOLOGIES LTD. (238 CTR 76 KAR) (V) TAPARIA TOOLS LTD. 372 ITR 605 (SC) 3.5 PER CONTRA, THE LD. DR PLACED STRONG RELIANCE ON THE FINDINGS IN THE IMPUGNED ORDER OF THE LD. CIT(A) UPHOLDING T HE DISALLOWANCE OF THE ASSESSEES CLAIM FOR EXPENDITUR E INCURRED ON EDUCATION SPONSORSHIP OF THE ASSESSEES EMPLOYEE / RELATIVE SHRI. AMIT P. SHAH ON THE GROUNDS THAT THE ASSESSEE HAS F AILED TO ESTABLISH THE NEXUS BETWEEN THE SAID EXPENDITURE AN D THE BUSINESS OF THE ASSESSEE. IT WAS CONTENDED THAT EX CEPT FOR PUTTING FORTH CLAIMS/ARGUMENTS, THE ASSESSEE HAS NO T BEEN ABLE TO ESTABLISH THAT THE SAID EXPENDITURE WAS INCURRED WHOLLY AND EXCLUSIVELY FOR THE BUSINESS OF THE ASSESSEE AS REQ UIRED U/S 37(1) OF THE ACT AND THEREFORE, THE CLAIM WAS RIGHTLY DIS ALLOWED BY THE AUTHORITIES BELOW. THE LD. DR FURTHER CONTENDED THA T THE JUDICIAL PRONOUNCEMENTS CITED BY THE ASSESSEE (SUPRA) WOULD NOT COME TO HIS RESCUE SINCE EITHER THEY DO NOT APPLY TO THE FA CTS OF THE CASE OR IN THOSE CASES SUCH AS SAKAL PAPERS LTD.(SUPRA), MA LLIGE MEDICAL CENTRE PVT. LTD.(SUPRA), KOHINOOR PAPER PRODUCTS(SU PRA) AND RAS INFORMATION TECHNOLOGIES PVT. LTD.(SUPRA), THE ASSE ESSEES THEREIN ESTABLISHED THAT THERE WAS A DIRECT NEXUS BETWEEN T HE COURSES OF STUDY/TRAINING TAKEN UP VIS--VIS THE BUSINESS OF T HOSE ASSEESSEES. 7 ITA NO. 2055 /MUM/2013 ASSESSMENT YEAR: 2009-10 3.6.1 WE HAVE HEARD THE RIVAL CONTENTIONS AT LENG TH AND PERUSED AND CAREFULLY CONSIDERED THE MATERIAL PLACED ON REC ORD, INCLUDING THE JUDICIAL DECISIONS REFERRED TO. THE FACTS THAT EMANATE FROM THE RECORD IN THE YEAR UNDER CONSIDERATION ARE THAT THE ASSESSEE PROVIDED HIS EMPLOYEE SHRI. AMIT P. SHAH, A RELATIV E OF HIS, EDUCATION SPONSORSHIP OF RS. 10,09,526/- FOR EDUCAT ION ABROAD AND DEBITED THE SAID EXPENDITURE TO HIS PROFIT AND LOSS ACCOUNT, CLAIMING THE EXPENDITURE TO BE ALLOWABLE U/S 37(1) OF THE ACT, ON GROUNDS OF COMMERCIAL EXPEDIENCY. IT WAS SUBMITTED THAT THIS EMPLOYEE WAS WORKING WITH THE ASSESSEES BUSINESS F ROM NOVEMBER, 2005. IT IS SEEN THAT, IN LESS THAN A YEA R AN AGREEMENT DT. 03/10/2006 WAS DRAWN UP BETWEEN THE ASSESSEE AN D THIS EMPLOYEE WHEREBY THE ASSESSEE GAVE THE EMPLOYEE MON EY FOR FEES AND OTHER EXPENSES TO PURSUE HIGHER EDUCATION AT MA CQUAIRE UNIVERSITY, SYDNEY, AUSTRALIA ON THE CONDITION THAT THE EMPLOYEE AFTER COMPLETING THE EDUCATION ABROAD WOULD RETURN AND WORK FOR THE ASSESSED FOR FIVE YEARS. IT IS SUBMITTED THAT THE EMPLOYEE RETURNED IN 2010 AFTER OBTAINING A DEGREE IN INTERN ATIONAL BUSINESS AND IS STILL WORKING WITH THE ASSEESSEES, LOOKING AFTER PRODUCTION AND MARKETING ACTIVITIES LEADING TO INCR EASE IN TURNOVER AND OPERATIONAL EFFICIENCY. FROM AN APPREC IATION OF THE FACTS ON RECORD WE, CONCUR WITH THE OBSERVATION OF THE LD. CIT (A) THAT THE EMPLOYEES EDUCATION WAS NOT FOR ANY SPECI FIC PRODUCT/PRODUCTION RELATED EDUCATION ABROAD THAT HA D A DIRECT NEXUS WITH THE ASSESSEES BUSINESS OF MANUFACTURE O F COTTON COATED FABRICS FOR THE LOCAL MARKET. WE ARE ALSO OF THE CONSIDERED VIEW THAT THE ASSESSEE, FILED TO ESTABLISH HOW THE EXPENDITURE INCURRED ON EDUCATION SPONSORSHIP OF THE EMPLOYEE S HRI. AMIT P. SHAH WAS INCURRED WHOLLY AND EXCLUSIVELY FOR THE PU RPOSES OF THE 8 ITA NO. 2055 /MUM/2013 ASSESSMENT YEAR: 2009-10 ASSESSEES BUSINESS OF MANUFACTURE OF COTTON COATED FABRICS FOR THE LOCAL MARKET. EXCEPT FOR THE CLAIM THAT THE ASS ESSEES INCREASE IN TURNOVER AND OPERATIONAL EFFICIENCY IS DUE TO TH E SERVICES OF THIS EMPLOYEE, NO MATERIAL EVIDENCE HAS BEEN BROUGHT ON RECORD TO ESTABLISH THE ASSESSEES CLAIM VIS--VIS OTHER EMP LOYEE OF THE ASSESSEE. IN THIS FACTUAL MATRIX OF THE CASE, WE AR E OF THE CONSIDERED VIEW THAT, THE ASSESSEES CLAIM FOR ALLO WING THE EXPENDITURE ON EDUCATION SPONSORSHIP FOR HIS EMPLOY EE/RELATIVE SHRI. AMIT P. SHAH U/S 37(1) OF THE ACT, IS NOT TEN ABLE AS THE ASSESSEE HAS FAILED TO ESTABLISH THE DIRECT NEXUS O F THE SAID EXPENDITURE ON THE ASSESSEES BUSINESS OF MANUFACTU RE OF COTTON COATED PRODUCTS AND THAT THIS EXPENDITURE HAS BEEN WHOLLY AND EXCLUSIVELY FOR THE ASSESSEES BUSINESS PRUPOSES. 3.6.2 WE HAVE PERUSED THE JUDICIAL PRONOUNCEMENTS CITED BY THE ASSESSEE AND ARE RESPECTFULLY OF THE VIEW THAT THE FACTS THEREIN ARE DISTINGUISHABLE FROM THE FACTS OF THE CASE ON HAND AND THEREFORE WOULD NOT FURTHER THE ASSESSEES CASE. IN THE CASES OF SAKAL PAPERS LTD.(SUPRA), MALLIGE MEDICAL CENTRE PVT. LTD .(SUPRA), KOHINOOR PAPER PRODUCTS(SUPRA) AND RAS INFORMATION TECHNOLOGIES PVT. LTD.(SUPRA), THE ASSESSEES THERE IN HAVE CLEARLY ESTABLISHED THAT, EVEN THOUGH THE EXPENDITURE WAS INCURRED ON EDUCATION OF THE DIRECTORS/PARTNERS CHILDREN, THE C OURSE OF STUDY/TRAINING SPONSORED AND TAKEN UP HAD A DIRECT NEXUS WITH THE BUSINESS OF THE ASSESSEES CONCERNED. 3.6.3 THE JUDICIAL PRONOUNCEMENTS CITED AND RELIED BY THE LD.CIT (A) WERE ALSO PERUSED AND WE FIND THAT THE DECISION S THEREIN ARE APPLICABLE TO THE CASE ON HAND. IN THE CASE OF ECH JAY FORGINGS 9 ITA NO. 2055 /MUM/2013 ASSESSMENT YEAR: 2009-10 LTD (2010) (328 ITR 286) (BOM) THE HONBLE BOMBAY H IGH COURT WHILE DISMISSING THE ASSESSEES APPEAL HELD THAT THERE WAS NO EVIDENCE TO PROVE THAT THE EXPENDITURE INCURRED ON THE EDUCATION OF THE DIRECTORS SON HAD ANY NEXUS WITH THE ASSESSE ES BUSINESS. WHILE HOLDING THUS, THE HONBLE COURT ALSO OBSERVED THAT THERE WAS NO EVIDENCE ON RECORD TO SHOW THAT ANY OTHER EM PLOYEE OF THE ASSESSEE HAS BEEN SENT ABROAD FOR SUCH HIGHER EDUCA TION. THE HONBLE BOMBAY HIGH COURT IN THE CASE OF HINDUSTAN HOUSING INDUSTRIES IN 209 ITR 383, WHILE DISMISSING THE ASS ESSEES APPEAL ON THIS ISSUE HELD THAT THE ASSESSED HAD FAILED TO ESTABLISH THAT THE EXPENDITURE INCURRED ON ACCOUNT THE PARTNERS S ON ACQUIRING A DEGREE IN BUSINESS MANAGEMENT IN USA WAS HELD TO HAVE NO NEXUS WITH THE ASSESSEES BUSINESS. 3.6.4. IN THE GIVEN FACTS AND CIRCUMSTANCES OF THE CASE, WE RESPECTFULLY FOLLOWING THE DECISION OF THE HONBLE BOMBAY HIGH COURT IN THE CASE OF ECHJAY FORGINGS LTD (2010) (3 28 ITR 286), THE FINDINGS OF WHICH SQUARELY APPLY TO THE FACTS O F THE CASE ON HAND UPHOLD THE ORDERS OF THE LD. CIT(A) IN DISALL OWING THE EXPENSES OF RS. 10,09,526/- INCURRED BY THE ASSESSE E FOR SPONSORSHIP OF THE FOREIGN EDUCATION OF HIS EMPLOYE E /RELATIVE SHRI. AMIT P. SHAH FOR OBTAINING A DEGREE IN INTERN ATIONAL BUSINESS FROM MACQUARE UNIVERSITY, SYDNEY, AUSTRALI A AND ACCORDINGLY FACTUALLY REJECT THE ASSESSEES CLAIM T HAT THE AFORESAID EXPENDITURE IS ALLOWABLE U/S 37(1) OF THE ACT, SINC E THE ASSESSEE HAS FAILED TO ESTABLISH DIRECT NEXUS BETWEEN THE S AID EXPENDITURE WITH THE ASSESSEES BUSINESS. CONSEQUENTLY THE GROU NDS RAISED BY THE ASSESSEE AT SR. 1 TO 8 (SUPRA) ARE DISMISSED. 10 ITA NO. 2055 /MUM/2013 ASSESSMENT YEAR: 2009-10 4. IN THE RESULT, THE ASSESSEES APPEAL FOR ASST.Y EAR 2009-10 IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON DECEMBER 18TH , 2015 SD/- SD/- ( AMIT SHUKLA ) (JASON P.BOAZ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI; DATED: 18/12/2015 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A)- 4. / CIT 5. !' , $ !'% , / DR, ITAT, MUMBAI 6. &'( / GUARD FILE. / BY ORDER, ) //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI PRAMILA