1989 (4) TMI 128

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....e of ball bearings used in several mechanical devices urged that the authorities below were not justified in disallowing travelling expenses of Rs. 20,815 out of a total of Rs. 23,385 as not relating to business carried on by him. The details of the travelling expenses was given on page 1 of the paper book, which showed that a sum of Rs. 20,815 was spent in going toHong Kong. A total of three trip....

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....also to study the market becauseHong Kongwas supposed to be the best market for trade in ball bearings. He also produced proof before the AAC to show that the purchases fromHong Kongamounted to Rs. 2.5 lacs and furnished details therefor. Yet the AAC disallowed the claim on the ground that the appellant was not manufacturing ball bearings but only deals in their sale and purchase and that the expl....

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....ished. He also submitted that the submissions made by the assessee before the AAC were misunderstood because the assessee never submitted that he was a manufacturer and all that he submitted was that he had to go to Hong Kong to acquire knowledge about latest types of ball bearings available and their use for its trade. This is certainly technical knowledge necessary ever for a trader to effective....

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....yet such an expenditure was held to be for the purpose of the business. The law is so well settled on this point that it needs no reiteration over here. When it was found that the assessee did make purchases to the extent of Rs. 2.5 lacs, it clearly established the business connection and the Department should not have held that the nexus between the travelling expenses toHong Kongand the business....