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2015 (1) TMI 354 - ITAT BANGALOREDisallowance out of travelling expenditure - Whether thes visits were exclusively for the purpose of business or they were pleasure trips – Held that:- In order to claim any expenditure incurred for the purpose of the business, an assessee has to demonstrate that the expenses were laid down wholly and exclusively for the purpose of the business only - The expression "wholly" denotes the quantum of expenditure, whereas "exclusively" denotes the purpose - Both these conditions should be fulfilled before claiming the expenditure - import of machinery was not disputed by the Assessing Officer - The visits of the Directors were also not disputed - possibility of involvement of personal expenditure in the traveling expenses cannot be ruled out - However, the involvement of personal expenditure could not be to the magnitude of 50% - The disallowance, even if made on estimate basis, it should be a fair and justifiable estimate considering the surrounding circumstances – the disallowance is restricted to the extent of 25% of the total expenditure. TDS u/s 194C – expenses incurred for convening meeting of dealers – Held that:- The assessee has not hired services of any event organizer - It simply booked the hotel for boarding - The hotel did not work on behalf of the assessee as a contractor - Otherwise every guest whosoever stay in a hotel ought to have deducted TDS while making booking or staying in it – following the decision in The East India Hotels Ltd. & Jaswant Singh Bhatia Versus CBDT and UOI [2009 (3) TMI 8 - BOMBAY HIGH COURT] - section 194 C is not applicable for payments made by the customer to the hotel - the facilities/amenities made available to its customers do not constitute 'work' within the meaning of section 194C of the Act - the circular No.681 dated 8/3/1994 to the extent it holds that the services made available by a hotel to its customers are covered under section 194C of the Act must be held to be bad in law – Decided partly in favour of assessee.
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