https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=755791 https://www.taxtmi.com/caselaws?id=755791 Allowable business expenditure- Foreign Travel Expenses - lower authorities restricting the foreign travel allowances to 50% - HELD THAT:- We are not able to draw an inference that the expenditure incurred by the assessee has co-relation with the professional activities of the assessee, for example, the assessee had claimed towards the foreign currency purchased for US Travel for 4500 USD. The said amount spent by the assessee was merely for converting Indian currency into foreign currency. However, what is required to be demonstrated by the assessee before was for what purposes, the US Dollars were spent by the assessee in U.S. but nothing was brought on record to show for what purposes the amount was spent. Similarly, the assessee had claimed another foreign currency of Rs. 1,49,578/- towards purchase of foreign currency for USA Travel Trip. However, against the nature of foreign travel, it was mentioned that the amount was spent towards fitness program but no evidence was produced by the assessee to show that amount spent towards fitness program. However, what was required to be produced by the assessee was that he had joined in fitness program of any club or at any fitness coach and had paid the said amount for that purposes. Since no evidence was brought on record by the assessee to substantiate his claim, therefore, lower authorities have rightly restricted the claim of the assessee to an extent of 50% thus making the addition. Physical Fitness Expenses - Though the physical fitness was a part and parcel of assessee s profession but it cannot be held to be incurred wholly and exclusively for the profession of the assessee. Even the assessee has not filed any evidence to show that he underwent any weight loss program to fulfill his professional commitment. Hence, we do not find any reason to interfere with the finding of ld.CIT(A) on this issue. Thus, this ground of the assessee dismissed. 20% of other expenses considered as personal expenses - No fault can be found in the reasoning of Assessing Officer / ld.CIT(A) as nature of expenses claimed by assessee comes under mixed basket of profession and personal expenses and it is not possible to segregate preciously professional with personal expenses. Hence, we do not find any reason to interfere with the decision of learned lower authorities. Thus, this ground is dismissed. Security Charges - Disallowing / upholding of 10% of security charges stating that there is personal element - As assessee has not filed any evidence to prove that these expenses are wholly and exclusively incurred for his profession. Hence, we confirm the action of AO in disallowing 10% security charges. Thus, this ground of the assessee is dismissed. 50% Swimming Pool Charges - contentions of the assessee are that he assessee has constructed swimming pool exclusively for his use on the land belonging to his sister to whom he was paying rent @ Rs.60,000/- p.m and that being a film star, he cannot use public swimming pool - If assessee constructed the pool on the land belonging to his sister itself, then obviously, there will be a probability of using the facility by his family members also. Hence, we cannot deny the involvement of personal element in this aspect. In view of the above, we do not find any reason for disagreeing with the findings of the ld.CIT(A) on this issue. Thus, this ground of the assessee is dismissed. Disallowance u/s 14A - As mentioned disallowing amount u/s 14A of the Act is fair and reasonable to cover up any expenses as such with regard to exempt income and granted part relief to the assessee. We do not find any reason for disagreeing with the findings of the ld.CIT(A) on this issue. Hence, we dismiss this ground also. Appeal of the assessee is dismissed. Case-Laws Income Tax Wed, 08 Nov 2023 00:00:00 +0530