2025 (1) TMI 811

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....essee has taken the following grounds of appeal:- "1. Ground No.1: Addition of Rs. 40,03,034/- being reimbursement of expenses incurred during the official tour for business purpose: 1.1 On the facts and in the circumstances of the case and in law, Ld. CIT(A) erred in upholding the addition of Rs. 40,03,034/- being the reimbursement of expenses incurred by the Appellant during the official tour for business purposes. 1.2 The Ld. CIT(A) failed to appreciate that the Appellant was an executive managerial person who was totally looking after the marketing and sales of the employer company and the he had extensively travelled in India and abroad to enhance the business of the company and the expenses which were reimbu....

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....d that on perusal of expenses it was seen that these expenses were on foreign air tickets, expenses incurred on food in Thailand, Dubai, London etc. The Assessing Officer was of the view that all such activities are related with leisurer and personal activities of the assessee, and the assessee has failed to reveal any business endeavor during such visits to Bangkok, Dubai or London. Therefore, the Assessing Officer held that such reimbursements by M/s. ADF Foods Ltd. to the assessee are in the nature of incentives given by the assessee and not reimbursement of expenses and therefore, such incentives should have been offered to tax by the assessee as his taxable income. Accordingly, the Assessing Officer added a sum of Rs. 40,03,034/- in th....

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....ng the year, the company had directly paid the aforesaid sum of Rs. 40.03 lakhs directly to the credit card companies. The Counsel for the assessee drew our attention to confirmation of M/s. ADF Foods Ltd. to the effect that these expenses have been reimbursed by the company towards official foreign visits of the assessee. Further, the Counsel for the assessee submitted that during the year under consideration, export turnover constituted 98.51% of the total turnover of the assessee it was submitted that during the year under consideration the total turnover of M/s. ADF Foods Ltd. was to the tune of Rs. 159 crores. Further, the Counsel for the assessee drew our attention to Page 8 of the Paper Book and submitted that during the impugned yea....