ASWATHANARAYANAESWARA Vs. DEPUTY COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) This appeal by the assessee is questioning the correctness of the order passed by the Income Tax Appellate Tribunal (ITAT) Madras 'A' Bench in ITA No.1811/Mds/2004, dated 23.03.2007 for the assessment year 2001-02.

(2.) The assessee is a professional firm of Consulting EngineersArchitects. For the assessment year 2001-02, the appellant filed a return of income admitting loss of Rs. 6,65,428.00. The assessment was completed under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") determining the total assessed loss at Rs. 4,20,588.00. The Assessing Officer disallowed a sum of Rs. 2,65,588.00 being foreign education and training expenses of partner Shri H.E.Sriprakash Shastry as being not related to the business of the firm and in doing so, followed the decision of this Court in the case of M.Subramaniam Bros. Vs. Commissioner of Income Tax reported in (2001) 250 ITR 0769 and the decision in Commissioner of Income Tax Vs. R.K.K.R Steels reported in (2002) 258 ITR 0306.

(3.) The assessee contended that Mr.H.E.Sriprakash Shastry is the son of Shri.Eswara, one of the partners of the firm, who had completed his B.E.Civil Engineering in the year 2000 and became a partner of the firm in April 2000 and he was sent to the University of New South Wales, Sydney, Australia during Feb. 2001 for specializing in construction management and upon completion of the higher education training, the said partner is continuing with the firm and specialized knowledge and training acquired by him in the field of Construction of Management is of immense benefit to the firm in its professional activities.