|The Tax Publishers2020 TaxPub(DT) 5373 (Chen-Trib)
INCOME TAX ACT, 1961
Expenditure incurred by assessee for attending two separate training courses could not be denied simply because the turnover has fallen down and the license granted by the Government to the assessee was also expired as expenditure incurred was a genuine expenditure and that it relates to business.
Business expenditure - Allowability - Expenditure incurred for attending two separate training courses -
Assessee was carrying on business of quarrying granite boulders and manufacturing blue metal. It claimed business expenditure for attending two separate training courses. AO held there was a decrease in the production and turnover and therefore, assessee by taking training had no business benefit. Further, the license granted by the Government to the assessee was also expired. Therefore, on this count, expenditure incurred by assessee was denied. Held: Expenditure incurred by the assessee was a genuine expenditure and the training undergone by the assessee was also a genuine one and that it relates to business. Though, it may not be directly connected to the business of the assessee but it relates to the assessee to run the business with better management skills for his business and also in implementing the systems process in his manufactures. Simply because the turnover has fallen down and further granting license is pending before the Government were not at relevant factors to deny the business expenditure claimed by the Assessee.
FAVOUR : In favour of assessee
A.Y. : 2014-15
IN THE ITAT, CHENNAI BENCH
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