TaxTMI 
TaxTMI 
1985 (1) TMI 100
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....orator, attendance of a packaging fair in Paris and discussion with suppliers of tin plate to ensure continued import of the required quality. The wife of Shri H.N. Kapadia accompanied him in this tour. On the travelling of Mrs. Kapadia a sum of Rs. 37,881 by way of airfare and Rs. 9,105 by way of other expenses totalling Rs. 46,986 were incurred. The assessee claimed this amount as an admissible expenditure under section 37(1) of the Income-tax Act, 1961 ('the Act'). In support of the claim, the assessee furnished copy of the resolution of the board of directors dated 27-9-1978, permitting Mr. H.N. Kapadia to take Mrs. Kapadia with him. The ITO observed that expenditure in the case of Mrs. Kapadia was 'not at all expenditure necessary or i....
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....that expenses had been laid wholly and exclusively for the business of the assessee. He further submitted that correspondence with the RBI could not be produced because papers were misplaced. The learned departmental representative, on the other hand, relied on the decisions in Modi Industries Ltd. v. CIT [1977] 110 ITR 855 (All.) and Cooper Engg. Ltd. v. CIT [1982] 135 ITR 597 (Bom.) in support of his contention that expenses in question were not laid wholly and exclusively for business. 4. We have considered the rival submissions. The learned Commissioner (Appeals) has considered this question in proper perspective and we find no error in the reasons given by him. In order to qualify for deduction, the expenses should have been incurre....
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.... connection with the business of the assessee. In the present case also Mrs. Kapadia not rendered any service in connection with the business of the assessee. The services in connection with the business were rendered by the senior executive, Shri H.F. Shah. Mrs. Kapadia rendered only personal service to Mr. Kapadia because of his illness. In the circumstances, the expenses on Mrs. Kapadia were clearly not allowable as business expenses. 6. The next ground relates to the assessee's claim for multiple shift allowance. The assessee had three units at three different places, viz., Anand Kanjri and Mehsana, for manufacture of tin containers. These units had worked different number of days by way of multiple shifts. The details are as follows....
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....; 305 The assessee claimed that triple shift allowance should be allowed for the whole year for all the three units because of the fact that one of the units had worked in triple shift in the whole year. The ITO, however, allowed depreciation allowance in regard to multiple shift working taking each unit separately and distinctly. The Commissioner (Appeals) has confirmed the order of the ITO and the assessee has come in appeal against disallowance of its claim on this item. 7. The relevant provision contained in depreciation table of the Income-tax Rules, 1962, is as follows: "(iv) Extra shift depreciation allowance: An extra allowance up to a maximum of an amount equal to one-half of the normal allowance shall be allowed whe....