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

Company's Foreign Travel Deduction Denied Without Proof of Business Purpose per Income Tax Act A private limited company sought to claim a deduction for the foreign travel expenses of its director, despite no income being generated from a foreign country. The company justified the expenses by stating that the director traveled to the UK for a meeting related to an ECB Loan from a bank. Additionally, the director visited other countries. The query was whether all these foreign expenses are allowable under the Income Tax Act. The response indicated that corroborative evidence must be provided to demonstrate that the travel was for business purposes rather than personal reasons.