TMI Blog2006 (6) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... has erred on facts and in law in further directing the Assessing Officer to compute deduction under section 80HHC in the light of decision of Hon ble Mumbai ITAT D Bench of ITAT i.e. , in the case of M/s. Sudhir C. Kamdar by adjusting loss arising under clauses ( a ), ( b ), ( c ) of the sub-clause (3) of section 80HHC. The learned CIT (A) erred in not relying upon the decision of the higher Courts in the following cases: (1) CIT v. Sterling Foods Ltd. 237 ITR 549 (SC) (2) IPCA Laboratories v. DCIT 251 ITR 401 (Bom.) which has been upheld by Hon ble Supreme Court who have also held that deduction in Chapter-VIA have to be computed as per the provisions of section 80AB. (3) CIT v. V.T. Joseph 225 (ITR) 731 (Ker.) The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. Being convinced with the contention of the revenue, we, set aside the Order of the CIT(A) in this regard and restore the issue to the file of the Assessing Officer to re-adjudicate it in the light of amended provisions of section 80HHC of the Act. 4. So far as ground No. 2 is concerned, it was contended on behalf of the revenue that the assessee has claimed the foreign travel expenses at Rs. 9,29,064 on trips made to foreign countries other than USA, Canada, Zermany and Spain. Assessee was asked to file some evidence to prove that the foreign travel was undertaken for the purpose of business. But, no evidence was furnished by the assessee either by way of communication with the parties visited or any other documentary proof to show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e as deduction under section 80HHC. It is also a business practice to visit a common place at the instance of customers to facilitate business discussions. The employees are also making visits to such countries for business purpose. Visits to such countries is also for exploring new market and for developing new business relations." 6. The revenue has preferred an appeal before the Tribunal with the submissions that the contention of the assessee that it was a 100% exporter is not disputed. But, whenever claims of expenditure is raised, the onus is upon the assessee to prove that those expenses were incurred for business exigencies. If the assessee has incurred an expenditure on foreign travels, he should place some documentary evidence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... foreign travel expenses only for those countries with whom the assessee did not have any export business or business dealings. The CIT(A) has allowed the claim of the assessee by making general observations. 8. We have also carefully examined the judgment of the Tribunal in the case of Asstt. CIT v. National Peroxide Ltd. 124 Taxman 122 (AT) ( supra ) and we do not dispute the observations of the Tribunal, that, some time direct evidences are not available to prove the business exigencies. But, the assessee could place some sort of evidence to convince the Assessing Officer that his visits to foreign countries were for the business purposes. No doubt, assessee is a 100% exporter and some expenditure must have been incurred to have ..... X X X X Extracts X X X X X X X X Extracts X X X X
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