TaxTMI 
TaxTMI 
2007 (2) TMI 152
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....of Shri A. C. Burman, chairman M/s. Dabur India Ltd., and has income from house property, business and other sources. The husband of the appellant has undertaken several trips abroad during the relevant period and the appellant accompanied him on these trips. The company had undertaken the expenses on tickets for the appellant's visit abroad. The Assessing Officer disallowed 50 per cent. of the expenses and treated 50 per cent. of the amount spent as income of the assessee under the provision of section 2(24)(iv) of the Income-tax Act (for short as "the Act"). 3 The appellant being not satisfied with the order of the Assessing Officer filed an appeal before the Commissioner of Income-tax (Appeals) who set aside the order of the Assessing....
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....case law in CIT v. Smt. Kamalini Gautam Sarabhai [1994] 208 ITR 139 (Guj). 7 On the other hand, it has been argued by learned counsel for the Revenue that the trips undertaken by the appellant who happens to be the wife of the chairman of the company were not in connection with the business and the onus of proof that these trips were undertaken by the appellant at the behest of the company and in relation to the business of the company, was on the appellant which onus has not been discharged by her. It is contended that the resolution dated June 20, 1998, relied upon by the appellant is of general nature which authorises the wife of the managing director to accompany him on his trips abroad, in relation to the business. The justification....
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....nticipate how many directors with their wives shall be visiting abroad in the near future and as such this resolution was general in nature. There has to be justification for the wife of the person concerned to accompany him and unless and until there is justification for the wife of concerned director accompanying him, such expenses cannot be allowed and there is nothing on record to show that all these trips were taken by the appellant with regard to the promotion of the business of the company. 10 In the case of CIT v. Smt. Kamalini Gautam Sarabhai [1994] 208 ITR 139 (Guj), the assessee had undertaken foreign tour at the instance of the company in which her husband was a director and purpose of the tour as shown by the company was to ....
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.... not attracted in this case. The Tribunal was, therefore, right in holding that the expenditure of Rs. 39,753 incurred by Karamchand Premchand (P.) Ltd. on the foreign tours was not includible as income under section 2(24) (iv) of the Act in the computation of the total income of the assessee." 11 There is no dispute to this proposition of law that the expenses incurred on the foreign trips of the wives are to be allowed provided, they are in relation to the business of the company The question whether the assessee can be said to have received any benefit or not is a mixed question of law and fact and what this court has to decide is whether on the facts found she can be said to have received benefit as contemplated by section 2(24) of t....