https://www.taxtmi.com/caselaws?id=8326 Foreign tour travel expenditure incurred by a managing director for negotiating collaboration, procuring machinery and expanding manufacturing capacity was treated as capital in nature to the extent it secured enduring business advantages, and the Income-tax Officer's apportionment was regarded as reasonable. Incidental entertainment expenditure during those business visits was treated differently: because it did not create any capital asset and was ordinary business courtesy connected with the tours, it remained allowable as business expenditure. The principal distinction drawn is between outlay for acquiring lasting business benefits and routine ancillary spend incurred in the course of business travel. en-us Thu, 03 Dec 1970 00:00:00 +0530 Thu, 09 Apr 2009 18:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8326 Foreign tour travel expenditure incurred by a managing director for negotiating collaboration, procuring machinery and expanding manufacturing capacity was treated as capital in nature to the extent it secured enduring business advantages, and the Income-tax Officer's apportionment was regarded as reasonable. Incidental entertainment expenditure during those business visits was treated differently: because it did not create any capital asset and was ordinary business courtesy connected with the tours, it remained allowable as business expenditure. The principal distinction drawn is between outlay for acquiring lasting business benefits and routine ancillary spend incurred in the course of business travel. Case-Laws Income Tax Thu, 03 Dec 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8326