TaxTMI 
TaxTMI 
2018 (5) TMI 1882
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....nd were heard together involving common issues, these are being disposed off by this common order for the sake of convenience and brevity. ITA No. 3832/DEL/2009 [Revenue's appeal for A.Y 2006-07] 2. First grievance of the Revenue relates to the deletion of addition of Rs. 18,03,341/- made by the Assessing Officer out of foreign travel expenses. 3. During the course of assessment proceedings, eth Assessing Officer noticed that the assessee has incurred foreign travelling expenses to the tune of Rs. 57 lakhs out of which the director of the company ha incurred Rs. 18.03 lakhs on visit to Australia which is related to acquisition of an Australian company. The Assessing Officer was of the opinion that since this expenditure was incurred for ....
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....esses, cushion, etc. Expenditure incurred on visits to Australia related to an Australian Company Joyce Foam Pvt Ltd which was also in the similar business as that of the assessee. Therefore, it can safely be concluded that the acquisition was not for a new business but expansion of existing business. In our considered opinion, expenditure incurred is legitimate business expenditure and deserves to be allowed. We decline to interfere. Ground No. 1 is dismissed. 8. Ground No. 2 relates to the allowance of deduction u/s 80IB of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' for short] at Rs. 3,73,60,972 instead of Rs. 3,00,35,190/-. 9. During the course of assessment proceedings and on perusing the chart of allocatio....
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....ed fund from the Head Office for the purpose of their business. The ld. CIT(A) further found that all the four eligible units were old and have generated sufficient surplus fund of their own which are used as source of finance for their activities. The ld. CIT(A) accordingly deleted the disallowance of Rs. 73,25,782/- and directed the Assessing Officer to allow deduction u/s 80IB of the Act without allocating financial charges. 12. Before us, the ld. DR strongly supported the findings of the Assessing Officer. It is the say of the ld. DR that the assessee could not explain the reason why the Head office had borrowed the sum of Rs. 40 crores. The ld. DR continued by saying that the borrowings by the Head office have been utilized for busine....
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....s to deletion of addition of Rs. 36,574/- on account of delayed payment of employees contribution of provident fund. 16. The Assessing Officer noticed that for the month of December 2005 and February 2006, the assessee has debited EPF contribution after due date including the grace period. The Assessing Officer accordingly disallowed Rs. 36,574/-. 17. The ld. CIT(A) found that the EPF contribution was deposited before the due date of filing of return of income. Finding that in the earlier year the Tribunal has deleted the disallowance so made on this account, the ld. CIT(A) following the order of the Tribunal deleted the disallowance of Rs. 36,574/-. 18. Before us, the ld. DR supported the findings of the Assessing Officer. 19. The ld. ....