Basic condition for allowability of foreign travel eaxpense

[Vikas Aggarwal]

Dear Sir/madam,

Can you help me if in this issues, a private limited company claim deduction of foreign travel expense of his director, but there was no income arise from foriegn country, however company raised an ECB Loan from UK & justified that purpose of forign travel was to held meeting from bank for discussion in this loan, apart from this director also visit abroad otherthan UK.

Whether all foreign expense allowable under Income Tax Act.

Regards

CA Vikas Aggarwal

[CAGOPALJI AGRAWAL]

We have to produce the corroborative evidence to prove that the travelling was on account of business expediency not personal one,

AI Summary

Business purpose of foreign travel: deduction allowed only with corroborative evidence linking trips to company affairs and not personal.
Deduction of foreign travel expenses requires proof that trips were for business expediency, not personal reasons; corroborative documentation (meetings, agendas, communications) must substantiate each journey. Travel related to lender discussions may be allowable if business purpose is proven, while any personal portion is disallowable and the taxpayer bears the burden of separating and proving business versus personal components.