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2020 (7) TMI 9 - AT - Income TaxDisallowance towards travelling expenses - Allowable business expenditure or personal expenditure - HELD THAT:- On a perusal of the details filed before the AO, it is seen that the assessee has given details of foreign visit expenses, which includes name and designations, country visited, TA-DA claimed, miscellaneous expenses, air fare, etc. These foreign travels have been for the trading purpose, conferences, training etc. Once the assessee has given very specific details of each and every employee, then without pointing out any specific discrepancy, no disallowance can be made. Apart from that, the reasoning given by the Ld. CIT (A), whether the presence of officials was required or not and how much that official has over stayed after completion of the official work is only based on presumption and surmise which cannot be upheld when the employees and directors were going official purpose. Being a PSU and under aegis of GOI, there cannot be an element of personal use of the company and therefore, such ad-hoc disallowance cannot be made and same is directed to be deleted. - Decided against revenue. Disallowance u/s. 14A of the Act read with rule 8D - CIT - A deleted the addition - HELD THAT:- Both the parties agreed that there is no exempt income earned by the assessee. The Ld. Counsel submitted that whence there is no exempt income, then there is no question of disallowance of u/s. 14A. Now, it is a well settled proposition under the jurisdiction of Hon’ble jurisdictional Delhi High Court in view of CIT vs Cheminvest Ltd. [2015 (9) TMI 238 - DELHI HIGH COURT] and CIT vs Holcim India Pvt, Ltd. [2014 (9) TMI 434 - DELHI HIGH COURT] that when assessee has not earned any exempt income then no disallowance u/s 14A can be triggered. Therefore, the disallowance u/s 14A made by the AO sans any exempt income is deleted. - Decided against revenue.
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