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Issues:
1. Allowability of expenditure on foreign tour of director as business expenditure under section 10(2)(xv) of the Indian Income-tax Act, 1922. Analysis: The case involved a private limited company engaged in the manufacturing of sugar, which claimed an expenditure of Rs. 8,152 incurred by one of its directors for attending a conference in Honolulu. The Income Tax Officer (ITO) disallowed the claim, but the Tribunal later allowed it, stating that the purpose of the tour was to acquire the latest techniques related to the business of sugar production. The department contended that the tour was not connected with the business and that the expenditure was not allowable for the assessment year in question. The department argued that since the tour was undertaken in May 1959 and the board's sanction was given in March 1960 for a different assessment year, it should not be allowed. However, the assessee argued that the expenditure was closely connected with the business and relied on previous decisions supporting this claim. The High Court considered whether the expenditure was allowable for the assessment year in question, emphasizing that the finding of the Tribunal on this matter was final. Citing previous decisions, the court noted that if a question of law was not raised before the Tribunal, it cannot be agitated later. The court also highlighted the importance of when the liability was incurred, not when it was credited, in determining the allowability of expenditure. The court referred to a Supreme Court decision regarding the deductibility of liabilities based on the date of approval. Ultimately, the court upheld the Tribunal's decision, ruling in favor of the assessee and rejecting the department's arguments. The court answered the question of law in the affirmative for the assessee and against the department, with no order as to costs. The Chief Justice concurred with the judgment, and the court concluded the case with this decision.
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