TMI Blog2007 (2) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal (for short as "the Tribunal") are being disposed of as both these appeals involve common question of law and fact. 2 Common facts as emerge out from the record are that the appellant is wife of Shri A. C. Burman, chairman M/s. Dabur India Ltd., and has income from house property, business and other sources. The husband of the appellant has undertaken several trips abroad during the relevant period and the appellant accompanied him on these trips. The company had undertaken the expenses on tickets for the appellant's visit abroad. The Assessing Officer disallowed 50 per cent. of the expenses and treated 50 per cent. of the amount spent as income of the assessee under the provision of section 2(24)(iv) of the Income-tax Act (for s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red abroad and as such the appellant did not derive any personal benefit or perquisite or obligation from such visits and in support of his contention, learned counsel for the appellant has relied upon the case law in CIT v. Smt. Kamalini Gautam Sarabhai [1994] 208 ITR 139 (Guj). 7 On the other hand, it has been argued by learned counsel for the Revenue that the trips undertaken by the appellant who happens to be the wife of the chairman of the company were not in connection with the business and the onus of proof that these trips were undertaken by the appellant at the behest of the company and in relation to the business of the company, was on the appellant which onus has not been discharged by her. It is contended that the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esolution. This resolution is of general nature, it is nowhere stated that each and every trip undertaken by the wife shall be borne out by the company. In 1998, when the resolution was passed, the company could not anticipate how many directors with their wives shall be visiting abroad in the near future and as such this resolution was general in nature. There has to be justification for the wife of the person concerned to accompany him and unless and until there is justification for the wife of concerned director accompanying him, such expenses cannot be allowed and there is nothing on record to show that all these trips were taken by the appellant with regard to the promotion of the business of the company. 10 In the case of CIT v. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e business of the company. For undertaking such foreign tours, neither had she incurred any obligation nor was any obligation incurred by her husband who was a director of the company. For this reason, even the second was not attracted in this case. The Tribunal was, therefore, right in holding that the expenditure of Rs. 39,753 incurred by Karamchand Premchand (P.) Ltd. on the foreign tours was not includible as income under section 2(24) (iv) of the Act in the computation of the total income of the assessee." 11 There is no dispute to this proposition of law that the expenses incurred on the foreign trips of the wives are to be allowed provided, they are in relation to the business of the company The question whether the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her adds that her visit was essential to promote business interest of the company in which her husband is the chairman. She however has failed to bring any evidence which may suggest that her visit was essential for the business interest of the company which has made payments for such visits. In this situation it cannot be said that she was doing any service to the company." 14 As per order of the Assessing Officer, there is a clear finding of fact that the assessee has failed to bring any evidence which may suggest that her visit was essential for the business interest of the company for which the company has made payment. In this situation it cannot be said that she was doing any service to the company. 15 Thus, in the present ..... X X X X Extracts X X X X X X X X Extracts X X X X
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