9911796707
TMI Blog2018 (4) TMI 246X X X X Extracts X X X X X X X X Extracts X X X X ..... ny. Here in this case preponderance of probability miserably fails as none of the factors or material indicates that such foreign travel was for the purpose of business. Assessee may have started a new line of business, but the particular visit of London does not appear to be for the purpose of business sans any supporting evidence like, any kind of correspondence, agreement, exchange of mails, etc. Mere stating that the directors have met one doctor and that to be one name has been given will not suffice. - Decided against assessee. - ITA No.:-3938/Del/2016 - - - Dated:- 30-1-2018 - Shri Amit Shukla, Judicial Member and Shri O.P. Kant, Accountant Member Assessee by: Shri R.B. Mathur, CA Department by : Shri Ravi Kant Gupta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... patients started to come for treatment to India from different countries, who were referred to various hospitals and A earned commission from them amounting to ₹ 54,194/- shown under the head other income (Note 15) in P L A/c. 3. However the Ld. AO held that assessee has failed to prove any evidence as to what was the exact purpose of foreign visit and no evidence with regard to attending of meetings, signing of contracts or procuring of orders for the principals have been produced despite giving specific opportunity to the assessee to prove the claim. Accordingly, he disallowed the said amount and added back to the income of the assessee. 4. Before Ld. CIT (A) the assessee contended that in the earlier year the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e up on this new line of business of medical tourism. He submitted that the Directors of the assessee company had undertaken the visit to the London for getting referral patient from London and have also met certain doctors in hospital in London, like Shri Sheraz Daya, Ophthalmologist. Even though assessee may not have got the business or able to sign any agreement in London but it does not mean the directors have not undertaken the travel for the business purpose. Such an expense has to be seen from the angle of commercial expediency and not from the point of view whether it has an immediate and proximate relation with the earning of the income in this year. Thus, he submitted that the expenses should be allowed and so far as the evidences ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s on the ground that the assessee company had started a new business of medical tourism which was getting a referral patients from various countries to India for medical procedure/ treatment. The said expenditure has been tried to be justified that during the year, it has shown income of ₹ 54,194/- out of the referral fee. If the assessee has undertaken foreign travelling for the purpose of business and for commercial consideration, it is not necessary that income must be earned from such expenditure during the year, but assessee has to demonstrate the commercial expediency. The onus lies very heavily upon the assessee to show that the expenditure incurred was in fact for the purpose of business and such an onus can only be discharged ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
