D.K. Agarwal, Judicial Member. - This appeal preferred by the assessee is directed against the order dated 21-10-2008 passed by the ld. CIT(A) for the assessment year 2004-05.

2. Briefly stated facts of the case are that the assessee company is engaged in the business of production of feature films and T.V. serials. During the previous year relevant to the assessment year under consideration four films viz. 'Saaya', 'Footpath, 'Inthiah' and 'Murder' were released. During the course of assessment proceeding, it was inter alia observed by the Assessing Officer that the assessee has spent Rs. 21,43,220 in foreign currency for the training of Mr. Vishesh Bhatt in USA Mr. Vishesh Bhatt is the son of Mr. Mukesh Bhatt who is the major shareholder of the assessee company. Taking into consideration various facts such as qualification of Mr. Vishesh Bhatt, relationship with the major shareholders, his age, academic qualification and purpose of expenses incurred, the assessee was requested to explain why the expenses should not be disallowed as the same was not incurred wholly and exclusively for the purpose of business. The assessee inter alia submitted as under :—

"Mr. Vishesh Bhatt went