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2017 (6) TMI 453 - AT - Income TaxAddition on account unexplained perks u/s 17(2)(iii) - employee v/s directorship - unexplained expenditure incurred on foreign travels - as per AO assessee had undertaken foreign travel tour to UAE, Singapore etc. but could not furnish the reasons/ purpose - Held that:- Since the authorities below simply noted that assessee was a director in the aforesaid company therefore conditions of section 17 (2)(iii) would not apply in the case of assessee. Therefore, on this reason itself the addition of ₹ 5 lacs would be deleted. Assessee filed certificate and Board resolution of M/s. Design & Development India Pvt. Ltd. in which it is clarified that Board has sent the assessee to foreign trip for business purposes and all the expenditure are borne by the company. It is also certified that assessee was a non-employee director and share holder in the company and no salary or director’s fees was paid to her by the company during the year under consideration. These evidences on record clearly prove that assessee undertaken foreign visits for the purpose of business of company and is not a perquisite within the meaning of section 17(2)(iii) of the I.T. Act. Further the authorities below made addition of ₹ 3 lacs in respect of foreign visit undertaken by assessee on 1st July, 2011. Ld. Counsel for assessee referred to PB 62 which is certificate of foreign visit issued by the company to show that assessee has visited foreign country from 30th June, 2012 to 1st July, 2011. Therefore, this visit was already part of the foreign visit of the assessee. Therefore, no separate addition should have been made on estimate in a sum of ₹ 3 lacs. - Decided in favour of assessee.
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