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TMI Blog1989 (5) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... trip toU.K.,USA,West Germany, etc. The Managing Director had undertaken the said tour in connection with the assessee's business. The ITO disallowed the expenditure relating to Mrs. Talwar on the ground that this was not for the purposes of assessee's business. This view has been upheld by the CIT(A). 3. The learned counsel for the assessee contended that Shri Talwar was not keeping good health and Mrs. Talwar accompanied him in order to look after him during his tour. He referred to the company's resolution authorising this expenditure, a copy of which has been placed at page 9 of the paper book. The resolution reads as under: "The Managing Director, Shri R.N. Talwar advised the Board that he proposes to undertake a foreign tour on com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or Mrs. Talwar to accompany her husband. 5. In CIT vs. T.S. Hajee Moosa Company (1986) 51 CTR (Mad) 200 : (1985) 153 ITR 422 (Mad) and Bombay Mineral Supply Co. P. Ltd. vs. CIT (1985) 153 ITR 437 (Guj), it has been held that expenditure incurred on the foreign tour of the wife of a partner or director is not allowed. We, therefore, agree with the authorities below and hold that expenditure incurred on the cost of air ticket of Mrs. Talwar was not necessary for the assessee's business and was, therefore, not allowable as deduction in computing its income. 6. In the Revenue's appeal also ground No. 1 relates to travelling by Mrs. Talwar. The Reserve Bank had sanctioned foreign exchange of the order of Rs. 42,280 for Mr. Mrs. Talwar. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee has maintained lawns. play ground, etc. It was contended that such expenditure is necessary for the maintenance of a suitable atmosphere around factory and office premises of the assessee and should be treated as business expenditure. The details of the expenditure have been placed at pages 19 and 20 of the paper book. The details show that the assessee has converted its open land into a well-laid garden. The expenditure would show that it does not contain salaries paid to Mails. On other hand, some supervision charges are listed in the items of expenditure. The list would show that several thousand plants have been planted. For example, on14th May, 1982, 175 plants were purchased for Rs. 2,3776.50; on22nd May, 1982another 410 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uphold the disallowance. 10. The last ground in the assessee's appeal is about its claim of weighted deduction on the following expenditure: (a) Export inspection fee for goods paid to export inspection agencies. 3,438 (b) Premium paid to Export Credit Guarantee Corporation 2,471 (c) Membership fee paid to Engineering Export Promotion Council 3,000 (d) Membership fee paid to Trade Development Authority 1,750 . 10,659 The assessee has stated in the ground that the claim is admissible in terms of r. 6-AA of the IT Rules. The claim has been rejected by the authorities below. Sec. 35-B(1)(b) has been amended w.e.f.1st April, 1981with the result that cls.(ii), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,20,162 (b) repairs of doors, windows and almirahs etc. Rs. 69,463 and (c) repair to floor Rs. 16,858. He disallowed this expenditure on the ground that it was of a capital nature. The learned CIT(A) has allowed this expenditure holding that it was of a revenue nature and was necessitated because the machinery installed in the Hose Division was shifted to another place for facilitating manufacture of Hoses under one roof. The bar store was also shifted from Metal Division to Hose Division and certain lathes were also shifted from one place to another. There were some renovation in the office block as well. The learned Departmental Representative did not dispute the findings as recorded by the learned CIT(A) and on such findings the expendit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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