2019 (1) TMI 50

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....e lower authorities' action disallowing its foreign travel expenditure claim of Rs. 32,33,865/- relating to its director's son Shri Yashbardhan Kejriwal. Its case throughout has seen that it had incurred the impugned expenditure for Shri Kejriwal as a management trading wholly and exclusively for the purpose of its business allowable as deduction u/s 37 of the Act. We find this issue to be no more res integra as a co-ordinate bench's decision in assessee's case itself I.T.A. No. 1433/Kol/2016 for assessment year 2011-12 decided on 02.02.2018 has accepted the very claim as follows: "12. Ground No.4 raised by the assessee reads as follows :- "4. For that the Ld. C.I.T(A) erred in confirming the disallowance of Rs. 22,01,093/- being forei....

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....ed the submissions of the authorized representative of the appellant as well as the assessment order framed in the light of the materials available on record before the assessing officer during the assessment proceedings. The AO has mentioned that during the year under consideration, Sri Kajriwal was not associated with the company and did not serve the company in any capacity. As such, the expenses related to his studies cannot be said to be incidental in the conduct of business activities of the company. As regards remaining expenses of Rs. 5,15,759/- no business connection could be established as the assessee never had any export activity. The assessee has failed to prove the business connection of these expenses 'as claimed by him d....