9911796707
TMI Blog2009 (3) TMI 1048X X X X Extracts X X X X X X X X Extracts X X X X ..... enue, is directed against the order of the learned CIT(A) dated 26-3-2008 relating to the assessment year 2004-05. 2. The only dispute in this appeal relates to the disallowance of expenditure on account of foreign tour and traveling expenses amounting to ₹ 18,89,812/- in relation to employees and partners in the course of the assessee s business. 3. According to the AO, the assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... merely based on suspicion. The assessee has filed details of the foreign travel expenses for the last five years at page 28 of the paper book and pleaded that such foreign tavelling expenses for the assessment year in question were at 1.77% of the turnover, whereas in A.Y. 2002-03, expenditure to the extent of 2.19% were claimed and allowed. He also relied upon the order passed by the ITAT Delhi B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 53 crores during the year in question. In A.Y. 2002-03 such turnover was only ₹ 31 crores and the expenditure incurred in that year, which was claimed and allowed by the department, was 2.19%. In our view, the claim of the expenditure is not unreasonable, having regard to the business requirement. Now the question is whether these can be allowed when the assessee has not produced certain vo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses are almost identical in nature. In our view, the assessee has a large export turn over and has also large purchases of raw material from the countries wherein travel to these countries are disputed by the revenue. In our view, the claim of the assessee is reasonable and should have been accepted. The addition made by the AO and sustained by the CIT(A) on the issue in question is, therefore, de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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