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2018 (5) TMI 126 - ITAT AMRITSARDisallowances under the head of T.A. & Conveyance - business expediency - expenses related to the foreign travels of the family members alleged to have been borne by the assessee company and claimed as expenses can not be considered genuine, because foreign visit of the family members are the private visits - Held that:- The nexus with business has to be clear and straightforward, and not remote or vague, as would appeal to a man of business, i.e., motivated and guided solely by business consideration. The same cannot be said in the present case/s. The accompaniment of wife/s appears to be purely for social purpose, as clearly her interaction is restricted to social platforms. As regards son/s, he is an outsider to the business, at least for the relevant years. As for the later year (A.Y.2014-15),AR clarified that the son/s had joined business, and which may perhaps led to the acceptance of the assessee’s claim for that year (at 80%). The nexus of the impugned expenditure with the business for the years under reference is tenuous and, in the least, not total. In other words, the expenditure bears a significant component of personal (non-business) element. As the assessee may stand to derive some business benefit from such social intercourse and, further considering that the son/s has joined business subsequently, indicating a business purpose as well, we consider it proper to restrict the disallowance to 40% of the impugned expenditure, i.e. qua TA and conveyance
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