Deduction - relative - Study abroad

[Rakesh Verma]

Assessee a partnership firm doing only exports sent relative of a partner to study marketting sterategy course in UK and claimed expenses , what is the position of its allowablity

AI Summary

Export Firm's Expense Deduction for Partner's Relative's UK Course Denied; Must Prove Business Benefit First A partnership firm engaged in exports sent a partner's relative to the UK for a marketing strategy course and claimed the expenses as deductions. The query raised concerns about the allowability of these expenses. The response indicated that such expenses are generally considered personal and not allowable unless the relative is an employee sent for studies under conditions that benefit the firm's business. It emphasized the need to prove the commercial expediency and ensure the expenses are wholly and exclusively for the firm's business purposes.