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2014 (6) TMI 395 - ITAT MUMBAIDeductibility of expenses on foreign travel – Burden to prove - Held that:- Not only has the assessee been totally unable to prove the business purpose of the expenditure, his case stands thoroughly discredited by the adverse, definitive findings by the authorities below - it would have only being preceded by as telephonic conversations, e-mails, etc. to firm up the arrangements with them - no supplies from foreign suppliers during the entire year, and which could have in fact commenced since inception, as all that was required was to book the goods from the regular suppliers in the name of the assessee’s firm. An IEC code is the first thing a person intending to import would obtain, which is a matter of simple procedure, while the assessee waits for years to do so - The other two trips during the year, i.e., in May and June, 2005 and December, 2005, expenditure on which is being claimed, are by the assessee’s father, and toward which no explanation stands furnished at any stage - The assessee has also not advanced any reason toward admission of additional evidence - any credence to the assessee’s claims cannot be made and the disallowance of the expenditure is upheld in-as-much as the assessee has clearly failed to prove the same as being incurred for business purposes, much less wholly and exclusively – thus, the disallowance id sustained on the basis of the finding of a complete absence of the discharge of the burden of proof u/s. 37(1) of the Act –Decided against Assessee.
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