2015 (1) TMI 610

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....oreign travel expenses incurred towards the wife of the partner is an allowable deduction? T.C.(A)No.1020 of 2014: Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that foreign travel expenses incurred towards Adirano Nathalini and others are allowable deduction even though no business connection was proved?" 2. The respondent/assessee, a partnership firm, is engaged in the manufacturing of leather shoe uppers. The assessee filed its return of income for the assessment years 2005-06 and 2007-08 admitting a total income of Rs. 1,08,20,770/- and 24,99,170/- respectively. The return of income for the assessment year 2005-06 was processed under Section 143(1) of the Income Tax ....

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.... by the order of the Commissioner of Income Tax (Appeals), the assessee preferred further appeals before the Income Tax Appellate Tribunal. 5. It is seen from the order of the Tribunal that the assessee is a shoe company and has been issued with a certificate of exporter/importer code. On a perusal of the partnership deed, the Tribunal found that the said partnership deed revealed that the assessee-firm came into existence on 01.07.1993 and Smt.Ravia Aejaz was one of the founder partners. The Tribunal took on record the said document and held that the said Mrs.Ravia Aejaz had travelled in the capacity of the partner herself of the assessee firm, which is an importer/exporter of the shoe products and hence the expenses incurred by the said ....

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....and perused the materials placed before this Court. 9. On a perusal of the order of the Tribunal, we find that as per the partnership deed, the wife of the assessee was one of the partner of the firm. Hence, the Tribunal was justified in granting the benefit to the assessee on the basis of the partnership deed. We find no reason to discredit the finding of fact, more so, after perusing the assessment order passed under Section 143(3) read with Section 147 of the Income Tax Act, which contains no reason as to why it should not be treated as business income. The mere ipse dixit of the Officer is not a ground to deny the claim made by the assessee. 10. The reliance placed by the learned Standing Counsel appearing for the Revenue on the decis....