9911796707
TMI Blog2002 (6) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... d company. In computing the total income for the assessment year 1987-88, the assessee claimed deduction for a sum Of Rs. 74,656 as foreign travel expenses of the wives of the directors of the company. The Assessing Officer did not allow the claim stating that the foreign tour of the wives of the directors was not for the purpose of the business. The Commissioner (Appeals) confirmed the disallowance concurring with the Assessing Officer. Before the Tribunal the assessee contended that the claim was allowable in view of the decision of the Tribunal (Bombay Bench) in the case of Glaxo Laboratories Ltd. as also that of A.F. Ferguson and Company. But the Tribunal placing reliance on the decisions of the Madras High Court in CIT v. T.S. Hajee Mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so of the Gujarat High Court have applied the law to the facts of the cases before them keeping in mind the requirement to be established under section 37(1) of the Income-tax Act. In the case before the Madras High Court the claim of the assessee-company was for deduction of the expenditure incurred by it on account of the wife of the senior partner accompanying him on a foreign tour for the purpose of attending on him as he was a diabetic. The learned judges of the Madras High Court took the view that the expenditure incurred for the travel of the wife of the senior partner under the above circumstances, was in the nature of personal expenses. It was further observed that even if it is assumed that the expenditure related to business purp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in CIT v. Aspinwall and Co. Ltd. [1999] 235 ITR 106 and CIT v. Appollo Tyres Ltd. [1999] 237 ITR 706 in support of the claim for deduction made by the assessee. But we may hasten to point out that the said decisions were rendered in favour of the assessee in the facts and circumstances of those cases. In the decision reported in CIT v. Aspinwall and Co. Ltd. [1999] 235 ITR 106 (Ker), the document produced by the assessee revealed the fact that the assessee-company took a decision to permit such travel and there was nothing to show that the travel was not for business purposes. In the second case reported in CIT v. Appollo Tyres Ltd. [1999] 237 ITR 706 (Ker), the finding of fact entered by the Tribunal was that the travel undertaken by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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