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| The Tax Publishers2021 TaxPub(DT) 0184 (Ahd-Trib) INCOME TAX ACT, 1961
Section 37(1)
Where assessee's business was of manufacturing of dye intermediate and chemicals and all the relevant documents in support of such tours indicating the business purposes of the assessee company were duly submitted before the authorities as it appeared from the order as well as the Paper Book, therefore, issue was duly covered in favour of assessee and hence, addition was to be deleted.
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Business expenditure - Disallowance of directors' foreign travel expenses - Non-business expenses - Allowability
AO made disallowance of directors' foreign travel expenses. CIT(A) allowed only the 50% of the total expenses on the ground that the assessee had no business transactions with Dubai and USA and Bangkok. Held: It was relevant to mention that assessee's business was of manufacturing of dye intermediate and chemicals. In Dubai, they attended the Beauty World Expo. In U.S.A., they attended a meeting and discussed business proposal at trade fare. In Thailand they attended meeting of YPO Chapter Retreat. All the relevant documents in support of such tours indicating the business purposes of the assessee company were duly submitted before authorities as it appeared from the order as well as Paper Book. Therefore, issue was duly covered in favour of assessee and hence, addition was to be deleted.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2013-14
INCOME TAX ACT, 1961
Section 36(1)(iii)
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