Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (7) TMI 1101 - AT - Income TaxDisallowance of R&D expenses - Held that:- The issue in this ground of the assessee being identical with the issue in the appeal of the assessee for the immediate preceding Asstt.Year 2004-05, wherein the same was restored by the Tribunal to the file of the AO vide order dated 25.6.2012 (2012 (7) TMI 697 - ITAT, AHMEDABAD), and we being in agreement with the order of the Tribunal, restore this issue to the file of the AO for de novo decision after providing reasonable opportunity of hearing to the assessee with similar directions for verification as contained in the order of the Tribunal dated 25.6.2012 (2012 (7) TMI 697 - ITAT, AHMEDABAD) for the earlier Asstt.Year 2004-05 Disallowance of foreign traveling expenses - Held that:- Assessee could not prove the business purpose of the expenditure on foreign travel. - assessee could not give any details of the business purpose of the foreign trips. The so-called details of the foreign travel expenses filed by the assessee before the Revenue authorities and copy filed in the compilation before us, shows that the details consisted of amount spent on air-ticket, medi-claim charges, hotel, taxi and other expenses have been mentioned. There is no detail of places or name of cities visited by the director of the assessee-company, nor any detail of the persons or business concerns visited, was given. The onus to establish that the foreign trip was undertaken for business purpose is with the assessee, which the assessee has failed to discharge in this case. Mere mentioning the name of the country visited along with mentioning of the total amount of expenditure under various heads of the expenses like, hotel bills, air-ticket etc. does not indicate or establish the business purpose of the foreign travel expenses incurred by the assessee-company. In the facts and circumstances of the case of the assessee, we hold that in the absence of even elementary evidence to prove the business purpose of the foreign travel undertaken by the directors of the assessee private ltd. company, the expenditure was rightly disallowed by the ld. CIT(A). - Matter remanded back - Decided in favour of assessee.
|