TMI Blog2005 (7) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... e incurred on each trip? 2. Whether Tribunal was right in law in holding that the expenditure of Rs. 44,966 incurred by the assessee on the foreign trips of the wife of the company's president was wholly and exclusively incurred for the business of the assessee and was allowable as a deduction in computing the profits and gains of the business?" - - - - - Dated:- 15-7-2005 - Judge(s) : V. C. D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pany's president was wholly and exclusively incurred for the business of the assessee and was allowable as a deduction in computing the profits and gains of the business?" So far as the first question is concerned, the same is covered by the decision of this court in the case of CIT v. Aorow India Ltd. [1998] 229 ITR 325. It is, therefore, answered in favour of the Revenue and against the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not in doubt. The expenses must stand the test of commercial expediency. The test of commercial expediency cannot be reduced in the shape of a ritualistic formula, nor can it be put in a water-tight compartment so as to be confined in a straitjacket formula. All that the law requires is that the expenditure should not be in the nature of capital expenditure or personal expenditure of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n a foreign trip of the wife of the company's president could be said to be not for the purposes of the business of the assessee-company. Considering the concurrent finding of fact recorded by both the authorities below, in our view, the expenditure would be allowable as deduction while computing the profits and gains of the business. Before concluding, we wish to clarify that the case needs to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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