2021 (4) TMI 746

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....hat arise for consideration in this appeal is regarding confirmation of disallowance of expenses incurred. 3. At the time of admission of the above appeal, the following substantial question of law arose for consideration: "Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding the expenditure incurred towards foreign education and training expenses of a partner Shri H.E.Srinivas Shastry, son of one of the partners Shri. Eswara, as personal in nature and hence not an allowable deduction?"" 4. Mr. R.Venkat Narayanan. learned counsel appearing for the appellant submitted that in the Tax Case Appeal No.929 of 2008, the Hon'ble Division Bench of this Court, by its Judgment dated 07....

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....te design, planning estimates and construction management. After graduation, he was made a working partner of the firm and he has worked on several projects, which have been mentioned by the assessee. In February 2001, he was sent to Australia for higher education. The duration of the course and training is for a period of two semesters and the course underwent was directly related to the profession carried on by the firm and this accrued in favour of the firm, as could be seen from the facts placed before the CIT(A), where the professional fee received by the firm had substantially increased. 25.On return, after completion of the post graduate degree, the partner continued to work for the firm and materials were placed to....

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.... Therefore, in our considered view, the assessee cannot be non-suited merely because, he has not used the expression "perverse" in the grounds of appeals before the CIT(A) as well as before the Tribunal. There is no dispute raised by the Revenue with regard to the factual position that the concerned partner went abroad for completion of the higher studies/education and on his return continued with the firm. Non-consideration of the factual issues, which are germane and which ought to have been considered, leads to perversity. Thus, the Tribunal committed serious error of law thereby vitiating the entire proceedings more particularly, the aspects which goes to the root of the matter. 28.Thus, for the above reasons, we are o....