TaxTMI 
TaxTMI 
2000 (6) TMI 7
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.... assessee-company is engaged in the business of manufacturing and sale of cranes, gas generators, etc. As per the tax audit report, disallowance was worked out at Rs. 1,52,372. The Assessing Officer in the course of verification of the details, found that the expenses incurred by the assessee in the course of travelling had not been considered for the purposes of disallowance. As per the details available on the record, the total of other expenses of Rs. 1,56,374 was disallowed in addition to the disallowances made by the assessee of Rs. 1,52,372. The matter was carried in appeal. The appellate authority came to the conclusion that rule 6D had no application to the expenses incurred by the assessee on account of conveyance and the calls mad....
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...., it has been laid down that the expression "hotel expenses" is specifically mentioned within parenthesis both in section 37(3) and rule 6D(2) and, therefore, the word "etc." mentioned in the marginal note along with the words "expenditure in connection with travelling" does not mean that the rule provides for expenditure on travel only. In other words, it was urged on behalf of the Department that the word "etc." in section 37(3) read with rule 6D clearly refers to conveyance and other expenses which are required to be disallowed subject to the ceiling prescribed in the said rule. We do not find any merit in the said contentions advanced on behalf of the Department. In the case of Inaroo Limited [19931 204 ITR 312 (Bom), the facts were as....