2017 (9) TMI 183

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....xpenses and foreign travelling & conveyance by the Assessing Officer and upheld by the CIT(A). 3. Facts of the case, in brief, are that the assessee is a company engaged in the business of consultancy services, software development, infotech and enabled service solutions. It filed its return of income on 20.09.2012 declaring income of Rs. 1,27,04,060/-. During the course of assessment proceedings, the Assessing Officer noted that the assessee has debited the following expenses in its Profit & Loss Account for the year under consideration :- S.No. Particulars Amount incurred 1. Business promotion expenses 5,99,508 2. Foreign Travelling & conveyance 20,48,664/-   TOTAL 26,48,172/- 4. He, therefor....

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....company. The details of the business promotion expenses were filed at page 49-50 of the paper book. It is seen that appellant has incurred Rs. 1,95,000/- for purchasing wall calendars, wrapping papers and table calendars and for that it has paid Rs. 1,95,000/- in the month of January 2012, for the remaining expenses appellant has not filed any other details except the month-wise details of the expenses incurred. As regards the foreign travel undertaken by the Directors, it is seen that Mr. Deepak Kapoor, Director of the company has undertaken foreign visit to USA, Italy, Singapore, Australia, Dubai, Bangladesh and for these visits the purpose has been shown of attending IT Conference and for identifying the vendors or new clients. ....

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....below Rs. 1,00,000/-. Referring to the bill issued by All Time Offset Printers towards printing of Wall Calendar, Wrapping Paper and Table Calendar for Rs. 1,95,300/-, copy of which is placed at page 50 of the Paper Book, he submitted that this is the only expenditure which is above Rs. 1,00,000/- during the year. All the other expenses are below Rs. 1,00,000/- the details of which are given at page 49 of the Paper Book. Referring to the decision of the Hon'ble Gujarat High Court in the case of Sayaji Iron and Engg. Co. vs. CIT reported in 253 ITR 749, he submitted that in the case of a company no part of the expenditure can be disallowed on account of probable personal expenditure. Further, the Assessing Officer has not pointed out any spe....

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....curred which includes cost of Tickets, Insurance, etc. The details of such foreign travelling expenses are placed at page 48 of the Paper Book which are also filed before the Assessing Officer. A perusal of the details shows that the Director, Mr. Deepak Kapoor has not visited any country with spouse or children. Similarly, the Director, Smt. Priyanka has also not visited any country along with her husband or family. The other persons namely Shyamjee Sudhakar and Shuchita Singhal are employees of the assessee company and they are not directors. Since full details are given regarding such foreign travelling expenses, therefore, under the facts and circumstances of the case, no ad-hoc disallowance, in our opinion, out of such expenses is call....