9911796707
TMI Blog1989 (4) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... below were not justified in disallowing travelling expenses of Rs. 20,815 out of a total of Rs. 23,385 as not relating to business carried on by him. The details of the travelling expenses was given on page 1 of the paper book, which showed that a sum of Rs. 20,815 was spent in going toHong Kong. A total of three trips were made to Hong Kong in the year for which the air fare came to Rs. 15,740 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in ball bearings. He also produced proof before the AAC to show that the purchases fromHong Kongamounted to Rs. 2.5 lacs and furnished details therefor. Yet the AAC disallowed the claim on the ground that the appellant was not manufacturing ball bearings but only deals in their sale and purchase and that the explanation offered by the assessee that he went abroad to acquire technical knowledge wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... misunderstood because the assessee never submitted that he was a manufacturer and all that he submitted was that he had to go to Hong Kong to acquire knowledge about latest types of ball bearings available and their use for its trade. This is certainly technical knowledge necessary ever for a trader to effectively deal in those goods. The learned Departmental Representative, on the other hand, co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ell settled on this point that it needs no reiteration over here. When it was found that the assessee did make purchases to the extent of Rs. 2.5 lacs, it clearly established the business connection and the Department should not have held that the nexus between the travelling expenses toHong Kongand the business connection was not established. As rightly pointed out by Dr. Narayanan a trader deali ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n with the business and must be wholly and exclusively for the purposes of the business. The assessee submitted that except in the first trip where he stayed on his own, in respect of the other trips undertaken by him, he was staying with his real uncle Shri Chaman Lal Gupta, who was permanently staying inHong Kong. We are therefore of the opinion that the authorities below were not justified in d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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