Case Law Details
Hindustan Unilever Ltd Vs ACIT (ITAT Mumbai)
ITAT Mumbai held that foreign travelling expenses in respect of spouses who accompanied on official tour with some of the company employees is allowable expenditure.
Facts- During the course of assessment the A.O noticed that assesse has debited an amount of Rs.40,04,260/- on account of foreign travelling expenses in respect of spouses who accompanied on official tour with some of the company employees. The Assessing Officer has disallowed such foreign travelling expenses on the basis of similar disallowance made in assessment year 1999-2000 on the reason that expenditure of foreign travelling of the spouses was wholly and exclusively not for the purpose of business.
The assesse filed the appeal before the ld. CIT(A). The ld. CIT(A) has dismissed the ground of appeal of the assessee.
Conclusion- We have perused the decision of ITAT vide ITA No. 2031/Mum/2004 for assessment year 1998-99 wherein the identical issue on similar fact has been adjudicated in favour of the assessee after referring the decision of the coordinate benches of the Tribunal in assesse’s own case for assessment year 1985-86 to assessment year 1997-98. Consistent with the view taken by the coordinate bench as referred above we allow the ground of appeal of the assesse.
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