Limit - Director's travelling expenses

[Guest]

Is there any limits to be restricted for a 'Private Limited Company' for incurring expenses under the head 'Directors' Travelling Expenses' for personal and official tour as per 'company act 1956 and as per Income Tax Act, 1961. Please Brief me with related case laws if possible.

AI Summary

Limits on Directors' Travel Expenses: Companies Act, 1956 & Income Tax Act, 1961 - Official Only, Personal Not Permitted. A query was raised regarding whether there are limits on a private limited company for incurring directors' traveling expenses for personal and official purposes under the Companies Act, 1956, and the Income Tax Act, 1961. The response highlighted that expenses booked must be reasonable and related to business activities, with neither act permitting personal expenses. It was suggested to refer to the accounting standards issued by ICAI for guidance, noting the challenge in distinguishing between personal and official expenses.