Case Law Details
Luthra & Luthra Law Offices Vs JCIT (ITAT Delhi)
Conclusion: Foreign travelling expenditure incurred by law firm for the pleasure tour by the counsels and their family members was not in relation to any business activity of assessee-firm, therefore, the same was not allowable.
Held: Assessee-firm claimed foreign travelling expenses. AO disallowed 10% of the same on the ground that assessee failed to establish that travelling expenses were incurred exclusively for the purpose of business. CIT(A) after perusal of the detail of the expenses , observed that assessee claimed advance made to M/s T for travelling by the counsels of the firm and their family members to Beijing which was not for official purposes but for personal purposes, and thus not allowable. In the instant case nothing had been brought on record that the trip was in relation to any business activity of assessee firm, and thus, assessee had failed to establish that the expenses were incurred wholly and exclusively for the purpose of the business and therefore, the same was not allowable.
FULL TEXT OF THE ITAT JUDGMENT
This appeal by the assessee is directed against order dated 17/12/2014 passed by the Ld. Commissioner of Income-tax (Appeals)- XX, New Delhi [in short the Ld. CIT(A)] for assessment year 2010-11 raising following grounds:
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