TaxTMI 
TaxTMI 
2018 (11) TMI 947
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....account of alleged bogus purchases & disallowance of certain foreign education expenses whereas the revenue is aggrieved by grant of relief on account of alleged bogus purchases. The assessment for impugned AY was framed by Ld. Deputy Commissioner of Income Tax-1(3), Mumbai [AO] u/s 143(3) on 20/03/2104 wherein the income of the assessee was assessed at Rs. 12.59 Crores after certain additions as against returned income of Rs. 11.81 Crores e-filed by the assessee on 30/09/2011. During impugned AY, the assessee being resident corporate entity was engaged as commission agent & in the business of marketing, installation & servicing of analytical hi-tech equipments. The following quantum additions are the subject matter of present appeal before....
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....to the income of the assessee. 2.2 The second addition stems from the fact that the assessee claimed foreign education expenses of Chairman and Managing Director, Shri Nakul Toshniwal, of the assessee company amounting to USD 28930.82 [equivalent INR 15,00,947/-]. The same were incurred during the period from Jan, 2011 to March, 2011 and the details of the same has been extracted at para 6.1 of the quantum assessment order. In support of the expenditure, the assessee placed on record Board Resolution authorizing the expenses. The stated expenditure was claimed to be incurred towards attending the Policy and Business programs of John Hopkins University, Washington DC and of Stanford University, California. The other terms of the said arrang....
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....er, the similar disallowance in immediately succeeding AY has been deleted by the first appellate authority itself, finding strength in assessee's claim. Per Contra, Ld. Departmental Representative [DR], Shri D.G.Pansari submitted that the assessee failed to discharge the primary onus casted upon him to prove the purchases and therefore, the additions were justified. 5. We have carefully heard the rival contentions and perused relevant material on record including documents placed in the paper book and various judicial pronouncements as cited before us. So far as the addition on account of alleged bogus purchases is concerned, the assessee has placed on record documentary evidences in the shape of purchase summary, copies of challans, purc....
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....me has been incurred in relation to knowledge enhancement of the key personnel of Assessee Company namely Nakul Toshnival aged around 36 years. The undisputed facts as advanced before us is that the director was first promoter director of the assessee company and was qualified as B.S. in economics from Wharton School of the University of Pennsylvania and was in the business for over 10 years during which the assessee company grew considerably. The expenses were incurred in relation to attending of Policy and Business programs of John Hopkins University, Washington DC and of Stanford University, California covering the period from January, 2011 to December, 2011. The program was designed as an executive program for experienced professionals ....