Credit card expenses of director not allowable on failure to prove business purpose

Manish Kumar Lath Vs CIT(A)-II (ITAT Indore) Conclusion: Where assessee-director was able to establish the relation between expenditure incurred by credit card with the business of the company in which assessee was a director, the expenses incurred was allowable to that extent. Held: Assessee was a director of M/s. I Private Limited and the credit card had been provided to meet the expenses. AO disallowed the expenditure on the ground that expenses were for the personal use. It was incumbent upon assessee to prove the nature of expenditure and purpose of the expenditure and correlate with the ...