Tribunal Overturns Disallowance of Travel Expense Deduction, Remands Case for Fresh Consideration.

The Tribunal set aside the order of the CIT(A) which had confirmed the disallowance of the assessee's claim for deduction towards travelling expenses. The Tribunal found that the CIT(A) failed to consider a submission made by the assessee justifying the expenses. Consequently, the case was remitted back for fresh consideration, granting the assessee another opportunity to present its case. The appeal was treated as allowed for statistical purposes.

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Issues involved: Disallowance of deduction towards travelling expenses.

Summary:
The appeal was filed against the order of the CIT(A) regarding the disallowance of the assessee's claim for deduction towards travelling expenses. The assessee, a company dealing in medical devices, had debited a sum under 'business promotion expenses' for travelling expenses in its profit and loss account. The Assessing Officer (A.O.) disallowed the expenses as the Authorised Representative of the assessee admitted that they were not incurred for business purposes. The CIT(A) confirmed the disallowance stating lack of proof of reimbursement or business promotion agreements. The Tribunal held that the assessee should be given another opportunity to present its case as the CIT(A) did not consider a submission made by the assessee justifying the expenses. The order of the CIT(A) was set aside, and the matter was remitted back for fresh consideration.

In conclusion, the appeal of the assessee was treated as allowed for statistical purposes.

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