Foreign travel expenditure of the spouse of the Managing Director, pursuant to the board resolution, is allowable as business expenditure

J. K. Industries Limited Vs CIT (High Court of Calcutta)- The expenditure may not have been incurred under any legal obligation, but yet it is allowable as business expenditure if it was incurred on grounds of commercial expediency. Thus, the borrowed fund advanced to a third party should be for commercial expediency if it is sought to be allowed under section 36(1)(iii) of the Act.

On Appeal it was directed to A.O. by Honourable HC to not to deduct any amount from expenditure on the ground that interest-free

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