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TMI Blog2018 (4) TMI 246X X X X Extracts X X X X X X X X Extracts X X X X ..... siness of marketing and selling of chemicals manufactured by its principal company, M/s. Henkel CA and also derived income from operations of wind energy project. During the course of the assessment proceedings, the AO noted that out of the amount of Rs. 48,41,277/- debited under the head travelling and conveyance expenses, sum of Rs. 9,45,841/- has been incurred on London visit by the Directors, Shri Inder Lal Oberoi and Smt. Asha Oberoi. In response to the show cause notice, the assessee had submitted and stated as under:- "Details of foreign travelling in the format as called for is attached. During the foreign travelling, meetings were held with the customers and orders worth USD 340206.20 (App Rs. 1,70,10,310/-) were procured and forw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ements. A brief write up of a new business and also the copies of invoices of expenses incurred in foreign travel was also filed. It was further submitted that the company has earned sum of Rs. 54,194/- out of the 'referral fee' from the new business which has been offered to tax under the head 'miscellaneous income'. However, Ld. CIT(A) confirmed the action of the AO on the ground that the assessee has failed to give any purpose and any kind of evidence for undertaking the visit by the Directors to London and also similar disallowances were made in assessment year 2011-12 which has been accepted by the assessee. 5. Before us the Ld. Counsel for the assessee submitted that, prior to the year under consideration assessee has commenced a new ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been shown in this year from the referral patient, they are from Nigeria which is an underdeveloped/ developing country and why a patient from would from London will come to India for medical treatment. In any case, the assessee has not been able to substantiate or prove its commercial expediency by adducing any evidence. He further pointed out that in the next year the assessee has permanently closed down this new venture. Even under the principle of commercial expediency, the onus was heavily upon the assessee to prove the genuineness of the expenditure and also whether it was the purpose of business or not. Thus, order of the Ld. CIT (A) should be affirmed. 7. We have heard the rival submissions, perused the relevant finding given i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... new business venture has been failed later on but assessee should have brought some evidence on record to prima facie show that the foreign travelling undertaken by the directors were wholly and exclusively for the business purpose of the company. Here in this case preponderance of probability miserably fails as none of the factors or material indicates that such foreign travel was for the purpose of business. Assessee may have started a new line of business, but the particular visit of London does not appear to be for the purpose of business sans any supporting evidence like, any kind of correspondence, agreement, exchange of mails, etc. Mere stating that the directors have met one doctor and that to be one name has been given will not su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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