2018 (1) TMI 1741

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....penses amounting to Rs. 1,23,007/- u/s 37/38 being l/5th of all expenses excluding Foreign Travelling stating personal expenses without considering the fact that assessee had already debited Rs. 5,29,177/- as drawing and Rs. 1,73,159/-on her Income and Expenditure Account which is separate from Expenses charged under Profit and loss account from business income. 2. That the learned Commissioner of Income Tax, (Appeal) - XXVI, New Delhi has erred, both on facts and law in confirming disallowance of Rs. 70,865/- u/s 37 being l/4th of Foreign Travelling Expenses amounting to Rs. 2,83,460/- as personal element. 3. That the order of the learned Commissioner of Income Tax (Appeals)-XXVI New Delhi, being not sustainable, the appe....

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....ss and therefore, had rightly disallowed a part of the same, being not relating to the business. As regards other expenses, the ld. DR submitted that the assessee was using her own residence for running her profession and the expenses claimed by the assessee included membership fee, depreciation on air conditioner, food processor, cell phone and laptop etc., which always has element of personal nature. Therefore, the Assessing Officer has rightly made the addition and the ld. CIT(A) has rightly upheld the same. 4. We have heard the rival parties and have gone through the material placed on record. As far as the foreign expenses are concerned, we find that the assessee had incurred expenditure of Rs. 2,83,460/- on account of foreign trave....

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....iture in view of the decision of Hon'ble Delhi High Court in the case of CIT vs. Givo Ltd. (supra) relied on by the assessee, wherein it has been held as under: 6. As far as the issue of foreign travelling expense is concerned, we find that ITAT has observed as under :- "4.1...... A perusal of the assessment order shows that the disallowance had been made by the Assessing Authority on account of non-filing of the details of travel. A perusal of the order of the Ld. CIT(A) shows that he has verified the assessment record and has found that substantial details had been filed. However, it is noticed that the Ld. CIT(A) drew a conclusion that the travel of the Managing Director to Paris, London, Amsterdam and Hong Kong had appar....

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....by the assessee are of professional nature. For the sake of completeness, the expenses claimed by the assessee excluding the foreign traveling expense, as noted by the Assessing Officer in the assessment order are reproduced as under: Sl. No. Particulars Amount 1 Business promotion 19,498 2 Conveyance expenses 65,055 3 Depreciation 20,324 4 Electricity expenses 50,560 5 Internet expenses 23,259 6 Printing & Stationery 8,185 7 Professional & legal Charges 27,000 8 Salary paid to staff 2,58,000 9 Newspaper charges 2,775 10 Telephone expenses 85,089 11 Traveling expenses 78,741 12 Membership fees 10,000 13 Counter charges ....