2009 (3) TMI 1048

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....PER G.E. VEERABHADRAPPA, V.P: This appeal, preferred by the Revenue, is directed against the order of the learned CIT(A) dated 26-3-2008 relating to the assessment year 2004-05. 2. The only dispute in this appeal relates to the disallowance of expenditure on account of foreign tour and traveling expenses amounting to Rs. 18,89,812/- in relation to employees and partners in the course of the ....

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....ness. The disallowance, according to the learned counsel, was merely based on suspicion. The assessee has filed details of the foreign travel expenses for the last five years at page 28 of the paper book and pleaded that such foreign tavelling expenses for the assessment year in question were at 1.77% of the turnover, whereas in A.Y. 2002-03, expenditure to the extent of 2.19% were claimed and all....

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....e has a large export turn over nearly to the extent of Rs. 53 crores during the year in question. In A.Y. 2002-03 such turnover was only Rs. 31 crores and the expenditure incurred in that year, which was claimed and allowed by the department, was 2.19%. In our view, the claim of the expenditure is not unreasonable, having regard to the business requirement. Now the question is whether these can be....