'Assistance To Law Students A Move To Create Goodwill, Develop Contacts': Harish Salve Seeks Deduction Of Foreign Scholarship; ITAT Allows
Live LawThe Income Tax Appellate Tribunal, New Delhi, has accepted the claim of Senior Advocate Harish Salve for deduction of the foreign scholarship given by him to two Indian students as "expenditure solely and exclusively for the purposes of business or profession" under Section 37 of the Income Tax Act, 1961.Under Section 37, expesnes for the purposes of business and profession can be. The Income Tax Appellate Tribunal, New Delhi, has accepted the claim of Senior Advocate Harish Salve for deduction of the foreign scholarship given by him to two Indian students as "expenditure solely and exclusively for the purposes of business or profession" under Section 37 of the Income Tax Act, 1961. In further appeal before the ITAT, Salve's representative argued that the foreign scholarship was a a 'business decision' as it was a move "not only to support the Assessee in creating goodwill amongst academia in UK and in turn creating a name/develop contacts in legal fraternity but also to support the juniors in chambers who may go abroad become technical sound and help in preparing the cases involving complex issue of international taxation and commercial law". In the 2019 decision, the ITAT had observed that professionals follow "innovative ways" to increase their professional stature, and foreign scholarship was one of such means.
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