TMI Blog1997 (10) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Revenue, arises out of an order of the Income-tax Appellate Tribunal, Cochin Bench, in I. T. A. No. 166 (Coch.) of 1989. The relevant assessment year is 1985-86. Following are the questions raised for the opinion of this court : "Whether, on the facts and in the circumstances of the case, the Tribunal is right in law and fact : (i) in allowing the foreign travel expenditure of the wife ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner of Income-tax (Appeals) confirmed the above view. But, on second appeal, the Tribunal limited the disallowance to 50 per cent. of Rs. 33,796. It is contended by learned standing counsel for the Revenue that the Tribunal has erred in not following the dictum laid down by the Madras High Court in CIT v. T. S. Hajee Moosa and Co. [1985] 153 ITR 422 and the Gujarat High Court in Bombay Min ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heard learned counsel for the respondent also. The Tribunal took the view that the wife of the chief executive accompanied in a business travel and that there was no material to show that her travel was for any purpose other than business. The Tribunal has taken note of the modern trend in which senior executives are accompanied by their wives on visits for business purposes. But, since the visi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, was in the nature of personal expenses. Even if it is assumed that the expenditure related to business purpose, it had a dual or twin purpose and served not only purposes of business but also a personal or private purpose and, therefore, it was not an expenditure incurred exclusively to serve the business. In the decision of the Gujarat High Court in Bombay Mineral Supply Co. P. Ltd. v. CIT [1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, it has to be taken that the wife of the chief executive had to undertake the travel for business purpose. On the basis of the above factual finding entered by the Tribunal, we do not find any merit in the contention raised by the Revenue that the Tribunal had committed an error in not following the dictum laid down by the Madras and Gujarat High Courts in the decisions referred to above. We, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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