2018 (4) TMI 260

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....ter 'the Act'). 2. The first issue in this appeal of assessee is against the order of CIT(A) confirming the action of the AO in disallowing foreign travelling expenses amounting to Rs. 6,10,422/-. For this assessee has raised the following ground No. 1: - "On facts and in law, the learned Commissioner of Income-tax (Appeals) thereinafter referred to as "Ld. CIT(A)"] had erred in confirming the disallowance out of Travelling expenses amounting to Rs. 6,10,422/- even though no personal/pleasure advantage was availed by the persons who travelled abroad. Under the facts and circumstances of the matter, the Ld. ClT(A) ought not to have confirmed the disallowance of Rs. 6,10,422/- made by the learned Assessing Officer (hereinafter referred to ....

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....in the form of the parties to whom the concern persons met during the visit, specific details about business meetings, conferences, seminars etc. attended, details of business dealing. anything tangible which can establish that the visits were for business purpose What the appellant has submitted is the name of the persons who visited Malaysia. Singapore and Srilanka. The appellant has taken a very strange stand that since the partners have not visited these places along with their spouse, personal or non-business visit is automatically ruled out. It appears that the appellant has forgotten that the firm is otherwise not allowed to debit any travel expenses related to the spouse or any other person, if they are not a partner or an employee ....

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.... of the case. We require the assessee's Counsel to explain what type of business conducted by assessee in relation to the visits of Shri Shiv Hari Agarwal to Singapore and Siddarth and Sandhini to Singapore but he could not explain. He only stated that just to explore the market. He could not submit any evidence of the same. In such circumstances, we are of the view that these foreign travelling expenses to Singapore by Shri Shiv Hari Agarwal and Siddarth and Sandhini is not in connection with the business of the assessee and assessee has no business connection with these countries at all. In such circumstances, we confirm the order of CIT(A) confirming the disallowance of foreign travelling expenses. This issue of assessee's appeal is dism....

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....oc disallowance of 10% by observing in Para 5.3 as under:- 5.1 The above contentions of the appellant have been carefully considered. It is observed that there are six partners in the firm. The AO made disallowance of Rs. 192,076/- (@10% of total expenses) under the head "telephone' and Rs, 1,37,466/- (@ 10% of total expenses) under the head "Motor Car expenses treating it as incurred for non-business purpose and for personal use. The appellant has not come out with any details to establish that the partners and the employees have other telephone and mobile phone instruments, bills of which are not incurred/reimbursed by the firm during the year under consideration. During the appellate proceedings, it is admitted that personal elemen....