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TMI Blog2014 (7) TMI 1101X X X X Extracts X X X X X X X X Extracts X X X X ..... 2012 (2012 (7) TMI 697 - ITAT, AHMEDABAD) for the earlier Asstt.Year 2004-05 Disallowance of foreign traveling expenses - Held that:- Assessee could not prove the business purpose of the expenditure on foreign travel. - assessee could not give any details of the business purpose of the foreign trips. The so-called details of the foreign travel expenses filed by the assessee before the Revenue authorities and copy filed in the compilation before us, shows that the details consisted of amount spent on air-ticket, medi-claim charges, hotel, taxi and other expenses have been mentioned. There is no detail of places or name of cities visited by the director of the assessee-company, nor any detail of the persons or business concerns visited, wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he disallowance made by AO and confirmed by the ld.CIT(A) is wholly unsustainable in law and on facts especially when the appellant (DSIR approved R D unit) has established the genuineness of such expenses for the purpose of developing new products for the export market. The disallowance of genuine business expenditure without any merits and justification requires to be allowed and order of ld.CIT(A) ought to be quashed. 3. The learned counsel for the assessee submitted that the ITAT, Ahmedabad Bench in assessee s own case for the immediate preceding assessment year 2004-05 has restored this issue to the file of the AO in ITA No.233/Ahd/2009 dated 25.6.2012, and this may also be restored to the file of the AO with similar direction. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reign traveling expenses disallowed by the AO and confirmed by the CIT(A) and even in Annexure-II filed by the assessee, the column benefit derived has not been answered. 7. We have considered rival submissions and perused the orders of the AO and the CIT(A) and various details of foreign traveling expenses filed by the assessee in the compilation before us. We find that the assessee could not prove the business purpose of the said expenditure on foreign travel. In Annexure-II copy filed at page no.129 of the compilation before us, the last column benefit derived , the assessee could not give any details of the business purpose of the foreign trips. The so-called details of the foreign travel expenses filed by the assessee before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equent year without appreciating the fact that tax was deducted at source and deposited by the appellant from the impugned payment before due date of filing of return. Both the lower authorities failed to take cognizance of the amendment brought by Finance Act, 2010 that is held to be retrospective in nature allowing additional time to the appellant for deposit of TDS before due date of filing of return. Ld.CIT(A) ought to have deleted the disallowance rather than directing AO to allow the expenses in the subsequent year. 9. The learned counsel for the assessee submitted that the assessee had deposited the amount before the due date of filing of the return, and therefore, the same was allowable and the provisions of section 40(a)(ia) do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee for the earlier asstt.year 2005-06, we for the reasons recorded while disposing of the appeal of the assessee for the earlier Asstt.Year 2005-06, in the foregoing paras of this order, restore this issue to the file of the AO with direction to decide the same de novo in accordance with law, after proving reasonable opportunity of hearing to the assessee, with similar directions, as contained in the order of the Tribunal for the Asstt.Year 2004-05 in the case of the assessee dated 25.6.2012, in ITA No.233/Ahd/2009. We direct accordingly. 14. In the result, appeal for the Asstt.Year 2005-06 is partly allowed for statistical purpose and the appeal for the Asst.Year 2006-07 is allowed for statistical purpose. Order pronounced ..... X X X X Extracts X X X X X X X X Extracts X X X X
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