TaxTMI 
TaxTMI 
2003 (2) TMI 418
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Briefly stated the facts are that the assessee is a practicing advocate in Delhi. For the assessment year 1994-95 under reference, a sum of Rs.5,07,331 has been debited to the P&L account on account of travelling expenses. Assessing Officer noted that the expenses included foreign tour expenses aggregating to Rs. 4,66,558. The wife of the assessee had accompanied him on these foreign tours and her expenses have also been included by the assessee as business expenditure. The Assessing Officer held that it is not verifiable whether these expenses are related to the profession of the assessee and in the absence of evidence, the Assessing Officer disallowed 50% of the expenses worked out at Rs. 2,38,880 treating the same as personal expenses o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nal assistant of the assessee represented allowable expenditure under section 37(1). In support of his contentions, ld. counsel placed reliance on the following decisions : (i) CIT v. Steel Ingots (P.) Ltd.'s case (supra) (ii) CIT v. Aspinwall & Co. Ltd. [1999] 235 ITR 106 (Ker.) (iii) CIT v. Sundaram Clayton Ltd. [1999] 240 ITR 271 2 (Mad.) (iv) CIT v. Indian Products Ltd. [1994] 73 Taxman 245 (Cal.) 8. Ld. DR, on the other hand, supporting the order of the ld. CIT(A) argued the expenses incurred on the foreign visits of assessee's wife who accompanied her husband are not in any manner related to the profession of the assessee and, therefore, such expenses have been rightly held as personal expenses disallowable by the CIT(A....
X X X X Extracts X X X X
X X X X Extracts X X X X
....gn tour cannot be regarded as expenditure laid out wholly and exclusively for business purposes as the wife could not be said to have contributed directly to the business of the assessee concern therein. 10. We have also gone through the decisions cited by the ld. Counsel. Ld. counsel referred to the decision of Madras High Court in the case of CIT v. Sundaram Clayton Ltd. (supra). In this decision, the High Court has taken note of the aforementioned decisions and observed that facts of the case were different inasmuch as the expenditure incurred by the assessee company was not on the spouse of its director on his business tour abroad but the expenditure was incurred on the persons whom the assessee had invited having regard to the benef....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the expenditure observed that this was not the case of a firm where the expenses of wife of the partner were being claimed. The assessee company in this case, had duly approved the foreign visit of its chief executive along with his wife. As against this in the case before us, the assessee has incurred the expenses on the foreign visit of his wife which are clearly of personal nature. 10.2 The next decision cited by the ld. Counsel has been rendered by the M.P. High Court in the case of Steel Ingots Pvt. Ltd. (supra). In this case, the Tribunal allowed the expenditure incurred by the Financial Director and his wife. The Board of Directors of the company has authorised the travel and medical expenses of the Financial Director and his wife....