Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2009 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2009 (9) TMI 509 - HC - Income TaxBusiness Expenditure- The Assessing Officer disallowed (i) foreign tour expenses on the ground that there was no evidence of nexus of the said expenses with the business. The Assessing Officer further disallowed (ii) expenses attributable to personal use of car, (iii) commission paid to the managing director and executives and (iv) payments towards legal and professional charges. The Commissioner of Income-tax (Appeals) partly upheld the claim of the assessee, which view was affirmed by the Tribunal. Held that- (i) the purpose of visit was to meet the foreign suppliers of raw materials, discuss technical methods with colleagues working in sister concern on product development and marketing is business expenditure. (ii) the expenses on account of use of car were not personal but for business purpose. The Tribunal followed its orders for the earlier assessment years in the case of the assessee. The appeal against that order was dismissed by this court. (iii) That the Tribunal had held the commission paid to the managing director and executives was permissible deduction as was held by the Tribunal for the earlier years in the case of the assessee. The appeal against that order was dismissed by this court. (iv) that with regard to disallowance of Rs. 70,000 made by the assessing Officer out of legal and professional charges, the Tribunal had held that the expense were incurred for business purposes. The order of the Tribunal could not be held perverse.
|