2013 (11) TMI 900

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....the learned AR. The same, therefore, stand dismissed. 3. Ground nos. 4 to 6 raised in this appeal are aga inst the disallowance of traveling and conveyance expenditure e amounting to Rs. 1,19,26,793. Briefly stated the facts of the case are that the assesse is a foreign company incorporated in USA and engaged in the business of maintenance of small TVs in Aircrafts. Return for the year was filed declaring loss of Rs. 4.21 lakh after certain disallowances. The claim of loss was not pressed in view of the fact that the assessee had filed a belated return. The a ssessee offered certain disallowances, which have been taken note of by the A.O. on page 3 of the assessment order. Such disallowances include the disallowance on account of head of....

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....s from USA should be considered u/s 44C. It has been recorded by the Assessing Officer inpara 6 of the order that : "This expenditure was in curred by the employees of PAC, US in India, in Indian currency, and subsequently reimbursed to them in foreign currency". Section 44 C talks of deduction of head office expenses in the case of non-residents. Clause (iv) of Explanation to this section defines "head office expenditure" to mean "executive and general administration expenditure incurred by the assessee outside India, including ..........". A bare perusal of the definition of head office expenditure in section 44C makes it manifest that only the expenditure incurred outside India can be brought within the purview of this provision. From th....

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....pick up a particular transaction of an expatriate visiting India and co-relate the expenses of such visit with the details incorporated in the paper book. He took up the case of Mr.Hardy Kevin. Taking us through the relevant details of his passport indicating the date of travel being 30.12.2006, relevant air tickets, necessary hotel bills for his stay in India and other necessary expenses in this connection, it was shown that all the necessarydetails were available. The learned Departmental Representative could not point out any contradiction in such details. 6. In view of the foregoing reasons, we are of the considered opinion that the amount of Rs. 1.19 crore does not call for any disallowance either by considering section 44C or secti....