2012 (5) TMI 644

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....s and circumstances of the case and in law, Ld Commissioner of Income-Tax (Appeals)-6 was not justified in confirming the addition on account of foreign travel expenses of ` 3,52,271/-." 4. Facts necessary for the disposal of this issue are stated in brief. The assessee is engaged in the business of design and supply of lighting products. In respect of the previous year 2006-07 the assessee incurred foreign travel expenses of ` 3,52,271/- which was claimed as deduction against business income. During the course of assessment proceedings the Assessing Officer noticed that two directors i.e. Mr. Satish Kapoor and Mr. Sarosh Shroff visited Bangkok on 11.10.2006 and returned on 15.10.2006. The purpose of trip was stated to be to discuss with....

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....M/s. C&P Lighting Co. Ltd., M/s. Green Light Product, M/s. Davis Lighting and M/s. BE-LIT. 5. The Assessing Officer examined the details furnished before him. In his opinion the assessee failed to produce evidence regarding the expenses which are wholly and exclusively incurred for the business purposes. He noticed that the places visited by the directors have no connection with the business of the assessee and no evidence was placed on record to prove that the places visited had any connection with the assessee's present business. Assessee was also called upon to furnish evidence to show that the foreign tours undertaken by the directors benefited the assessee-company by way of transactions with the parties in the future assessment year....

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....he absence of any material to support the nexus between expenditure and the business carried on by the assessee. He therefore upheld the order of the Assessing Officer. 7. Further aggrieved, the assessee is in appeal before the Tribunal. Learned counsel for the assessee filed a paper book consisting of 178 pages and by adverting my attention to page No. 48 & 49 it was submitted that the assessee corresponded with Mr. Eric regarding the visit of directors to Bangkok and the purpose was stated to be to meet some lighting designers from Thailand which is BE-LIT and others. Page No. 127 to 131 refers to the quotations received from M/s. C&P Lighting Co. Limited. Page 170 onwards is a detailed DO letter addressed to the Assessing Officer to s....