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2019 (11) TMI 93 - AT - Income TaxDisallowance out of foreign travel expenses - travelling of directors as incurred on the foreign travel to USA made by Ms Unnati Didwania, daughter of managing director of the assessee company - HELD THAT:- The assessee has incurred expenses on travelling of the directors, which included expenses on travel of Ms. Unnnati Didwania to various countries of Europe, Bangkok, Dubai, Singapore, UK and USA etc. AO has disallowed only the expenses related to the USA trip as assessee failed to establish that travel to USA by Ms. Unnati Didwania was wholly and exclusively for the purpose of the business. The assessee failed to file copy of tour report, details of any clients met, details of any seminar/conference or any other documents which could establish that the purpose of the travel was for business. Before the learned CIT(A) also the assessee failed to establish the business purpose of the travel. CIT(A) from the vouchers of foreign exchange purchased by the assessee found that purpose of the travel was private in nature. Onus was on the assessee to establish that the expenditure incurred was for the purpose of the business and in view of the failure on the part of the assessee in discharging its onus, we do not find any error in the order of the CIT(A) on the issue in dispute and accordingly, we uphold the same. The grounds of the assessee in relation to this issue are dismissed. Disallowance of medical expenses incurred on treatment of one of the Director - HELD THAT:- Resolution passed in the general body meeting of the company, there is no dispute as the reimbursement of medical expenses was allowed to Sh. G.L. Didwaniya as perquisite and not as commercial expediency. The assessee was required to deduct tax at source on the said amount of perquisite, which was part of the salary as defined under section 17 (2) - No error in the order of the learned CIT(A) on the issue in dispute and accordingly, we uphold the same. The grounds of the appeal of the assessee, related to the issue in dispute are accordingly dismissed.
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