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2013 (8) TMI 242 - HC - Income TaxDisallowance of Foreign Travel Expenses - CIT upheld disallowance of Foreign Travel Expenses - Tribunal deleted disallowance - Held that:- when an expenditure is claimed to have been incurred by an assessee for promotion of his business, there is no legal obligation imposed on the assessee to prove that the expenditure was necessary for promotion of his business. So long as the expenditure is incurred by an assessee for promotion of sale of product, the assessee is entitled, under Section 37(1) of the Act, to claim exemption from tax on such amount of expenditure - For the allowability of an expenditure under Section 37 of the Act, it is not relevant as to whether the benefit, expected to be accrued out of an expenditure incurred, is to accrue immediately or after a lapse of time, whether directly or indirectly - since it is customary in the European countries for the wives to accompany their husbands, the travelling of the wives along with their husbands cannot be said to be personal visits of the wives, but such a visit has to be regarded as having been undertaken for the purpose of business of the respondent company - expenditure, on the visits by the representative of the company abroad and expenditure as well as the visits to India by the London based officials of the respondent company, in view of the respondent company's substantial exposure to overseas trade and large holdings of the respondent company with foreign promoters, were business expenditures - No substantial question of law arises - Following decision of Eastern Investments Ltd. vs. CIT [1951 (5) TMI 1 - SUPREME Court] - Decided against Revenue. Disallowance under head publicity expenses - Held that:- If the management paid some amount for the upliftment/ running of the club in question, then it must be held that the payment was made in the interest of the company so that its employees remain happy and consequently the work of the company was not hampered in any way due to dissatisfaction on the part of its employees - while dealing with donation made voluntarily by an assessee with the object of obtaining permits of business, so as to enable the assessee to earn profits by export and selling of gram in the neighboring states - it is for the assessee to decide where and in what manner publicity of its business is to be done and what benefit it will derive for its business by making such publicity - Following decisions of Assam Brooke Ltd. vs. CIT [2004 (1) TMI 46 - CALCUTTA High Court] and Additional Commissioner of Income Tax vs. Kuber Singh Bhagwandas [1978 (10) TMI 134 - MADHYA PRADESH High Court] - Decided against Revenue.
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