Ad hoc disallowance of foreign tour expenditure not sustainable without questioning the business purpose of the trip

 Amit Jain Vs ITO (ITAT Kolkata)-  Assessee made a foreign trip to Roam, Dubai and Kathmandu and claimed expenses at Rs.1,45,151/-. Assessing Officer required the assessee to produce the evidence and also business purposes. Assessee stated that foreign tour was for surveying interiors of foreign hotels and resorts at the request of his client Arneja Creation & Hotels (P) Ltd. who wanted interiors of their hotel project at Darjeeling in similar fashion as those at Kathmandu. Assessee explained that tour to Roam was for the purpose of exploring prospectus of importing special type of Marbles for interior decoration and Dubai was a stop-over en-route to Rome. Assessing Officer in the absence of evidence treated 20% of foreign trip expenses as personal in nature and disallowed a sum of Rs.29,003/-. We find that none of the authorities below have denied that this is not for the purpose of business. Once it is not denied, the foreign trip expenses cannot be disallowed on ad-hoc basis.