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foreign travelling expences

satbir singhwahi

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.

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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CAGOPALJI AGRAWAL on Nov 7, 2012

RAHULJEE & COMPANY PVT. LTD. Versus INCOME TAX APPELLATE TRIBUNAL-I & OTHERS

Please refer the said case law, probably you would be able to derive the grounds in your case.

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