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TMI Blog1980 (9) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... ion relates to expenditure incurred by partner Sri A.R. Santhanakrishnan, for foreign trip and trips to New Delhi and Bombay. Considering the smallness of the business activities of the assessee firm the ITO disallowed a round sum of Rs. 10,000 as not relating to business. 2. In appeal, the AAC took a different view. The foreign trip expenses came to Rs. 16,097. He was of the opinion that that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss of the assessee is goods transport. The assessee stated before the ITO that he visited among other places, London Brick Co., the biggest brick manufacturing concern in U.K. and saw how they transports their produce in bulk quantities. The AAC did not dispute the truth of the fact of the visit to this factory. So that visit by itself is sufficient to show that it is a business visit and the expe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... did, what he studied or how he proposes to use the information for the carrying on of his business. The fact that he had seen how the company transports its goods in bulk itself is sufficient to show that is a business visit. The extent of benefit derived by the foreign trip and which the AAC wanted to ascertain with precision is not at all relevant. The purpose of the journey is a crucial test, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Whether he actually puts that information gathered, to use, to improve his business is not at all material. So the entire expenditure on foreign trip has to be allowed as a deduction. The assessee has not appealed against the disallowance of Rs. 10,000 and it restricts its appeal only to the enhancement. 4. Therefore, the appeal is allowed. The enhancement made by the AAC is deleted. - - Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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