2002 (9) TMI 40

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....estions of law referred to us are as follows: "Whether, on the facts and in the circumstances of the case: (i) the expenditure incurred on the foreign travel of the wives of the directors is an allowable deduction ? (ii) should not the Tribunal have considered the claim independently and on merits ?" The assessee claimed allowance of foreign travel expenses of the wives and directors. ....

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..... Before the Tribunal, the state contended that the allowance was not correct. In paragraph 12 of the order of the Tribunal, it is stated thus: "We have heard the parties to the dispute. The Commissioner of Income-tax (Appeals) while allowing the impugned relief has, in fact, relied on the decision of the Special Bench of the Tribunal in the case of Glaxo Laboratories (India) Ltd. v. ITO (Secon....

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....y Mineral Supply Co. P. Ltd. v. CIT [1985] 153 ITR 437 (Guj) (Appex.), the Gujarat High Court held as follows : "In our opinion, the need of the managing director of the assessee-company to have the services of his wife who was not a qualified or a trained nurse either to attend on him for his indifferent health or to prepare food for him since he happened to be a strict vegetarian would not entit....

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....ife of the chief executive of the assessee-company was an allowable deduction". After hearing both sides, we are satisfied that the Tribunal has not given reasons with regard to the travelling expenses of the wives of the directors. Mere statement that the travelling expenses incurred by the wives of the directors were considered to be admissible expenses does not mean that this is not personal....