2001 (11) TMI 20

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....he Tribunal has accepted the assessee's case that the expenditure incurred on the education of the son of the director abroad should be treated as business expenditure, reversing the view of the Commissioner and the assessing authority. The assessment year is 1977-78. The assessee which is engaged in re-rolling and manufacturing of steel had claimed that the sum of Rs. 64,922 expended on meetin....

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....ncurred on his training was in fact, an expenditure which was to the benefit of the company as he subsequently became a director. If this logic were to be accepted, in every family owned business, all the expenditure incurred in bringing up the children who may later on be given a role in the business as partners or directors could be claimed as business expenditure incurred in training the pro....

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.... their expert service after they acquire proficiency in the field in which they had been sent for training. It is evident that a Director father had, instead of incurring expenses from his personal account, which he should have, had merely chosen to debit the expenditure of his son's education to the business of which he was the director. Such expenditure does not become business expenditure, mere....