9911796707
TMI Blog2002 (6) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer under section 2(24)(iv) of the Income-tax Act on account of expenses incurred on the foreign tours of the wife of the director. 2. The common facts as they emerge out of the record is that the assessee is the wife of Shri A.C. Burman, Chairman of M/s Dabur India Ltd. and has income from house property, business and other sources. It is stated that the husband of the assessee had undertaken several trips abroad during the relevant period and his wife accompanied him on these trips. The company had undertaken the expenses on tickets for her visit to abroad. The Assessing Officer disallowed 50 per cent of the expenses and treated 50 per cent of the amounts spent as the income of the assessee under the provisions of section 2(24 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss. After having said so, the learned DR submitted that it is incumbent upon the assessee to show the necessity of her accompanying her husband on the trips undertaken by her because of the general nature of resolution. He then submitted that justification of each trip is to be submitted by the assessee and where the assessee is not in a position to give justification in accordance with the provisions of section 2(24)(iv), the additions have to be made at the hands of the assessee with respect to the expenses incurred. The learned DR submitted that the information with regard to the necessity for a trip abroad is a special kind of information which is in the special knowledge of the assessee and, therefore, it is incumbent upon the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... take up the issue as to who is to discharge the onus whether it is revenue or the assessee that the trip was required and was in relation to the business. Tile initial onus to discharge this burden is on the assessee. Once the assessee discharges this burden by a positive evidence then the onus shifts on the revenue to contradict but unless and until the assessee discharges the onus by a positive evidence we are afraid we cannot expect the revenue to contradict the same. In the light of this, we need to examine as to whether the assessee has discharged the onus by a positive evidence. For appreciating the nature of evidence led, we have scanned through the record and find that except the resolution which has been reproduced in the earlier p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , there was no agenda or programme at the time of passing of resolution. This leads us to an irresistable conclusion that for each trip, there has to be justification for the wife of the person concerned to accompany him and unless and until there is a justification for the wife of the concerned Director accompanying him, we are afraid such an expense cannot be allowed. We as stated above have scanned through the record to find any evidence which could justify and correlate the trip undertaken by assessee but we could not lay our hands on a single document except the resolution referred to above. in the absence of such record, we feel that the assessee has not discharged the burden laid upon her. 9. During the course of hearing it was sug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e employees to work with greater loyalty. Even this judgment does not advance the case of the assessee as there were different facts. The other case relied upon by the learned AR in ITO v. E.F. Ferguson Co. [1986] 19 ITD 620 (Bom.). A case where the partner of a company along with their wives went abroad to attend conferences which had also been attended by the associates from the other part of the world along with their wives. The technical meeting at the aforesaid conferences were also followed by social gatherings where the wives of the other participants joined. It was in this set up the claims were allowed. Even this judgment is based on different facts and does not advance the case of the assessee. 10. Before we refer to the other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he facts of the present case. 12. Another reason which makes us disturb the findings of the CIT(A) is that how could a company visualise some meeting to happen in future would be required to be attended by the wife. Neither the meeting nor the trip was certain when the resolution was passed. What would be the business conditions, exigencies requirements is also not disclosed is the resolution. What were the circumstances, business exigencies and business circumstances in which the assessee accompanied her husband is also missing. What benefit has accrued to the company on account of her visit abroad is also not disclosed. We feel that on all the trips special instances for the wives who accompany her husband are not only to be indicated b ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
