1997 (10) TMI 38

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.... and fact : (i) in allowing the foreign travel expenditure of the wife of the executive of the company? (ii) in presuming business interest in the foreign trip of the wife of the executive in view of the approval of the company and is not such an approval automatic and disapproval against common place and common sense and the Tribunal is justified in the least in relying on the so-called 'approval'?" The relevant facts are as follows : The assessee-company is engaged in the business of curing of coffee, steamer agency, clearing and forwarding agency. For the assessment year 1985-86, the assessee claimed an expenditure of Rs. 2,08,465 on foreign travel which included Rs. 33,796 incurred on the tour of the wife of the chief execut....

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....rial to show that her travel was for any purpose other than business. The Tribunal has taken note of the modern trend in which senior executives are accompanied by their wives on visits for business purposes. But, since the visit may have some social aspects also, it took the view that the entire amount cannot be allowed. It was under these circumstances, the Tribunal disallowed fifty per cent. of the amount claimed under this head. The facts in the two decisions relied on by the Revenue are different. In CIT v. T. S. Hajee Moosa and Co. [1985] 153 ITR 422 (Mad), the claim of the assessee-firm was for deduction of the expenditure incurred by it on the wife of the senior partner accompanying him on a foreign tour. The definite case of the....