TaxTMI 
TaxTMI 
2005 (9) TMI 512
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....r has been deleted by the CIT(A) with the observation that the perquisite value of free supply of electricity to the residence of the Director has been shown by him in his return of income. 3. We have heard the ld. representatives of the parties and perused the record. After considering the facts and the above observation of the CIT(A), we are of the view that when the perquisite value of free supply of electricity has already considered in the hands of the Director, therefore, the disallowance in case of company i.e. employer is not justifiable. We find that the CIT(A) has correctly deleted the impugned addition of Rs. 64,588. 4. The second ground raised in this appeal is pertaining to deletion of disallowance of foreign travelling expen....
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.... assessee M/s. Engee Chemicals Industries Pvt. Ltd. has also claimed foreign travel expenses which was incurred by the husband of Smt. Rajniben Chokshi in that period. The Assessing Officer concluded that the material available on record prove that both have made pleasure trip to U.S.A. and Switzerland. He, accordingly, disallowance Rs. 1,22,096 by holding that same is not incurred wholly and exclusively for the purpose of the business of the assessee. The CIT(A) deleted the addition. 5. The ld. AR submitted that Smt. Rajniben Chokshi is holding M.A. Degree and she is a Director of the assessee-company since the incorporation of the company in 1978. He further submitted that she is fully conversant with the business activities of the asses....
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....s to the assessee-company during her overseas visit which can be said to be for the purpose of the business of the assessee-company. The Assessing Officer has specifically asked the assessee to furnish the necessary evidence in support of the claim. The Assessing Officer observed that the assessee in his written reply before Assessing Officer merely given name of the parties to whom Smt. Rajniben Chokshi has made contact during her overseas visit. Any expenditure not being in the nature of capital expenditure or personal expenses laid out or expended wholly or exclusively for the purpose of the business is allowable expenses under the I.T. Act. It is necessary in order to determine the controversy under consideration to consider what consti....