ITAT Delhi Grants Deduction for Foreign Travel Expenses of Directors

Arms Communications Pvt. Ltd Vs ACIT (ITAT Delhi)

In the case of Arms Communications Pvt. Ltd Vs ACIT, the ITAT Delhi has permitted the deduction of foreign travel expenses of the directors, contending that such expenses directly contribute to business advancement. The decision overrules a prior disallowance of the expenses, acknowledging the business necessity of the directors’ foreign travel.

The initial disallowance was due to the Assessing Officer’s belief that the foreign

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