Allowability of Foreign Tour expenses of wife of Managing Director

J.K. Industries Ltd. Vs. Commissioner of Income Tax (Calcutta High Court)– When the Board of Directors of the assessee had thought it fit to spend on the foreign tour of the accompanying wife of the Managing Director for commercial expediency, the reasons being reflected in its resolution quoted by us, it was not within the province of the Income-tax Authority to disallow such expenditure by sitting over the decision of the Board, in the absence of any specific bar created by the Statute for such expenditure.

IN THE HIGH COURT OF CALCUTTA
ITA No. 624 of 2004
J K INDUSTRIES LTD
Vs

COMMISSIONER OF INCOME TAX
(CENTRAL-1)

Bhaskar Bhattacharya and Sambuddha Chakrabarti, JJ

Dated: March 17, 2011

Appellants Rep by: Mr J P Khaitan, Mr Sanjoy Bhowmick Respondents Rep by: Mr R N Bandopadhyay, Mrs S Das Dey

JUDGEMENT

Per: Bhaskar Bhattacharya:

This appeal under Section 260A of the Income-tax Act, 1961 is at the instance of an assessee and is directed against an order dated June 29, 2004 passed by the Income-tax Appellate Tribunal, ‘D’ Bench, Calcutta, in Income-tax Appeal being ITA No.2471/Kol/2003 for the assessment year 2001 by which the Tribunal has affirmed the order passed by the Commissioner of Income-tax Appeal.