2017 (2) TMI 584

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..... enior DR. Assessee by : Shri Chandra Shekhar, CA. ORDER Per G. D. Agrawal, VP The appeal by the Revenue and the cross-objection by the assessee for the assessment year 2005-06 are directed against the order of learned CIT(A)-I, New Delhi dated 23rd October, 2013. 2. In the Revenue's appeal, the only ground raised is against the reduction in the disallowance of foreign travel expenses while, i .....

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..... ances, learned CIT(A) was not justified even in allowing the part relief. He stated that the onus is upon the assessee to prove that the expenditure was incurred wholly and exclusively for the purpose of business. Learned counsel for the assessee, on the other hand, pointed out that all the details were furnished before the Assessing Officer and learned CIT(A) has only considered those details and .....

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..... he appellant, could not be properly identified by the appellant. Therefore, the nexus between the expenditure and the business of the appellant could not be established in that case. 5.4 There are also four instances involving foreign visits by journalists who are not its employees or consultants, and who do not have any direct business relation with the appellant company. The Press Council Act .....

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..... s an inducement to write favourably about their products and services. Therefore, the expenditure incurred by the appellant company on sponsoring foreign travel of the journalists is against the law and not an allowable expense as per Explanation to section 37(1) of the Income Tax Act, 1961, which states as under : Explanation. - For the removal of doubts, it is hereby declared that any expendi .....

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..... expenses and after considering each and every expenditure, he arrived at the conclusion that the expenditure of Rs. 5,45,375/- was not for the purpose of business and accordingly, has disallowed the same. After considering the facts, we do not find any infirmity in the order of learned CIT(A). The same is upheld. 7. In the result, the appeal of the Revenue as well as crossobjection of the assesse .....

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