Management training costs for a partner were denied as business deduction absent any proven nexus to the firm's business.

Expenditure on higher studies and management training of a partner was not accepted as a business deduction where the record did not establish any nexus between the outlay and the firm's business. The payment was therefore not shown to be expenditure laid out for the purposes of the assessee's business, and the deduction claim failed against the assessee.

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Issues: Whether expenditure incurred for management training of a partner of the assessee-firm was an allowable business deduction for the relevant assessment year.

Analysis: The expenditure was incurred for the higher studies and management training of a young partner, and the record did not establish any nexus between that expenditure and the business of the firm. The claim was therefore not supported as expenditure laid out for the purposes of the assessee's business.

Conclusion: The expenditure was not allowable as a business deduction and the question was answered against the assessee and in favour of the Revenue.

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