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2019 (10) TMI 761 - AT - Income TaxAddition on account of MTM losses on account of foreign exchange fluctuation - HELD THAT:- We are of the considered opinion that the decision in the case of Woodward Governor P Ltd [2009 (4) TMI 4 - SUPREME COURT] and ONGC vs CIT [2010 (3) TMI 81 - SUPREME COURT] are applicable, and the line of judicial view is that the Revenue cannot be permitted to contend that there is a CBDT instruction No. 03/2010 dated 23/3/2010 to the contrary. No CBDT circular or instruction can be contrary to the decision of the Hon’ble Apex Court, even subsequent to the decision of the Hon’ble Apex Court. We, therefore, accept the contention of the assessee and hold that the addition is unsustainable. We, accordingly, direct the Assessing Officer to delete the same. Disallowance of foreign travel expenses incurred in respect of the family members of the directors - HELD THAT:- Unless and until, it is shown that it is customary for the directors or the employees to attend such business meetings or so with wives and minor children, merely because the assessee says so, it cannot be assumed that the accompaniment of wife and minor children of the directors, management trainees and overseas employees was due to commercial expediency. It is not the case of the assessee that the directors or other employees of the company have declared in their returns of income the foreign travel is a perquisite. We are of the considered opinion that the foreign travel expenses in respect of the wives, minor children and others fail the test of commercial expediency and there are no valid reasons to interfere with the findings of the authorities below on the disallowance of the foreign travel expense relatable to the wives and minor children of the directors, management trainees and overseas employees of the assessee company. We therefore dismiss ground No. 2 of assessee’s appeal.
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