2011 (11) TMI 205

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..... fresh and directing the assessee to furnish full details of the travelling expenses." 2. The respondent-assessee had filed return declaring loss of Rs. 9,81,50,987/- on 27.11.2003 for the assessment year 2003-04. 3. The Assessing Officer vide order dated 30.03.2006 computed the total income of the assessee at a loss of Rs. 9,33,25,287/-. The Assessing Officer held that the respondent was engaged in the business of manufacturing, trading and export of rice and had shown negative GP rate as compared to the Assessment Year 2001-02. A questionnaire was issued to the assessee why GP rate should not be enhanced as a similar addition was made in the earlier years. There was no response of the assessee and, therefore, the Assessing Officer applie .....

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..... cannot be equated with furnishing of inaccurate particulars of income and/or the concealment of income. 6. On the appeal filed by the Revenue, the Income Tax Appellate Tribunal in respect of the foreign tour expenses has directed as under:- "....So far as disallowance of traveling expenses of Rs. 11.48 lac is concerned, the AO has asked the assessee to submit supporting details/the documents to prove that expenditure was incurred for purpose of business, due to absence of the assessee before the AO no such details could be furnished. Therefore AO imposed the penalty with reference to the disallowance of traveling expenses. The CIT(A) has deleted the penalty by observing that failure to file justification of conducting the foreign tour by .....

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..... not granted sufficient and adequate opportunity to establish their claim with regard to the foreign travel expenses i.e. whether the said expense is allowable under Section 37 of the Act? Therefore, the Tribunal, while setting aside the order of the CIT(A) on the question of foreign travel expenses, had remitted the matter to the Assessing Officer be decided afresh with liberty to the assessee to furnish full details of the foreign travel expenses alongwith justification for incurring of the said expenses including the foreign travel of the wife of the director. 8. In view of the aforesaid, we do not see any reason to interfere with the order of the Tribunal. The appeal is dismissed. The question framed above is discharged. No costs.
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