Partners have taken foreign trip to collect samples and designs for manufacture and export of garments during the year , they have given proof by way of Air tickets, passport and foreign currency receipts. Whether this evidence is sufficient for assessment.Can A.O. disallow exp. if no other evidence is available.
foreign travelling expences
satbir singhwahi
Business travel expense deductibility depends on documentary proof and demonstrable nexus to commercial purpose. Deductibility of partners' foreign travel for procuring samples and designs depends on proof of commercial purpose and adequate supporting documents; air tickets, passports and foreign currency receipts serve as primary evidence, but the assessing officer may disallow expenses if nexus to business activity is not otherwise corroborated, and reliance on precedent is appropriate to contest disallowance. (AI Summary)
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