TMI Blog1990 (11) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellate Tribunal (Bangalore Bench) on an application made by the appellant-assessee before it, under section 256(1) of the Income-tax Act, declined to refer the first of the two questions which the assessee required the Tribunal to refer to this court for answer. However, the Tribunal, after considering the facts of the case, referred the second question which is as follows : "Whether the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s employees and directors when they were away from the headquarters in connection with the work of the company. It was contended that only a sum of Rs. 20,000 should be added back which was the expense incurred for travelling and cost of stay outside the headquarters of the employees other than such expenses incurred in respect of directors' travel and stay on the ground that the directors were no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellate Tribunal, Bangalore Bench, in Income Tax Applications Nos. 737 and 738/Bang of 1980 and 32/Bang of 1981 for the assessment years 1975-76, 1976-77 and 1977-78 were preferred. By a composite order, the Tribunal declined to entertain the contention of the assessee to the effect that the directors or employees who travelled outside the headquarters in connection with the work of the company we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and that too by the authorised authorities are binding on the assessing authorities and other adjudicating authorities and not circulars or instructions issued by the authorities other than those empowered to issue directions under section 119 of the Act. The Tribunal reasoned out, following the decision of the Kerala High Court in the case of V. A. Vasumathi v. CIT [1980] 123 ITR 94, that the sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld to include matters occurring prior to as well as subsequent to or consequent upon so long as they are related to the principal thing. In other words, whatever has nexus to the travel undertaken in connection with the work outside the headquarters resulting in the stay, such stay, whether actual work in connection with the company's affairs was carried out or not, would be relatable to the trav ..... X X X X Extracts X X X X X X X X Extracts X X X X
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