1975 (10) TMI 3

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....ivalrous we may be inclined to be in this international women's year, we reluctantly feel inclined to reject this reference in the matter of disallowance of the foreign tour expenses of the wife of the managing director of the assessee-company for obvious reasons. The assessee herein is a private limited company. The relevant assessment years are 1960-61 to 1964-65. In the accounting year S.Y. ....

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....e-company claimed deduction of this expenditure as business expenditure. The ITO disallowed the expenditure to the extent of Rs. 9,579 incurred for the tour of Kokilaben. The assessee-company carried the matter in appeal before the AAC who, however, agreed with the contention of the assessee-company and held that Kokilaben, being a Hindu wife, would not ordinarily go to place like Japan unless it ....

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.... the opinion of the Tribunal the expenses of Rs. 9,579 could not have been said to have been incurred for the business of the assessee-company. At the instance of the assessee, therefore, the following question has been referred to us for our opinion : " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in disallowing the foreign tour expenditure of R....

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....that of a nurse and the expenses incurred in respect of the tour of Kokilaben should be allowed as business expenses since there is no distinction in principle in the real nature of the expenses. We are sure that tax collectors do not want to discourage business executives and managing directors from undertaking foreign tours for business purposes nor to deprive them of the company of their wives ....