TMI Blog2005 (12) TMI 220X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 41,595 on account of tour to Mussorie in relation toDelhioffice and Rs. 27,853 on account of tour to Kodaikanal from Chennai office. Both the learned AO and the learned CIT(A) have disallowed the expenditure on the ground that this was the trip for personal pleasure of the partner of the firm and their family members. During the course of hearing before us. the learned Authorised Representative of the assessee brought our attention to the documents furnished at pp. 1 to 21 of the paper book. As per these papers, these trips were made by the employees of the assessee mostly and they were also accompanied by the partner of the firm. The assessee argued that this trip was organized for providing recreation to the members of the staff with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... than a holiday home maintained for exclusive use by the assessee's employees are not allowable as deduction. On assessee's appeal, the learned CIT(A) has concurred with the view taken by the AO. Still aggrieved, the assessee is in appeal before us. 4. During the course of hearing before us, the learned Authorised Representative of the assessee argued that the expenditure was incurred with a view to acquire a facility for the employees of the assessee's to have their own accommodation for the purpose of pleasure trip at a holiday resort. The expenditure was in the nature of staff welfare and, therefore, qualified to be expenditure incurred wholly and exclusively for the purpose of business of the assessee-company. The learned Authorised Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the facility having been acquired for the first time during this year. Still the assessee could prove this contention by furnishing the particulars of utilizing this premises in succeeding years. No such material has been relied upon. Therefore, the explanation of the assessee has remained unsubstantiated. We are, therefore, of the view that the nature of the assessee's expenditure is required to be ascertained first. For that purpose, we restore this issue to the file of the learned AO who shall allow the assessee reasonable opportunity to substantiate its explanation and thereafter the learned AO shall decide this issue afresh on merits in accordance with law. We may clarify that as no physical asset has been acquired, it cannot be termed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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