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TMI Blog1998 (4) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... hould be allowed as a deduction in computing the income of the assessee. The chairman and the managing director referred to in the order of reference are the chairman and the managing director of Clayton Dewandre Holding Limited, collaborators of the assessee-company, Sundaram Clayton Limited. They had been invited to India by the assessee-company in connection with its business for the purpose of discussing with the assessee-company their manufacturing and marketing programmes, future plans and other activities and also to visit the assessee's factory to get acquainted with the day-to-day working. They had been invited to come to India with their wives as it was useful besides being graceful to invite them in that way as that would furth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l effect of helping to promote the business interest of the assessee. Learned counsel for the Revenue submitted that the Tribunal was in error in taking that view. Learned counsel referred to the decision of this court in the case of CIT v. T. S. Hajee Moosa and Co. [1985] 153 ITR 422, to the decision of the Gujarat High Court in the case of Bombay Mineral Supply Co. Pvt. Ltd. v. CIT [1985]153 ITR 437 (Appex.) and to the decision of the Allahabad High Court in the case of Modi Industries Ltd. v. CIT [1977] 110 ITR 855. In all these cases, the matter in issue was the expenditure incurred on the wives of the directors of the assessee-company during their travel abroad along with their husbands. It was held in these decisions that the expend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure would qualify for being considered as a deduction from its gross income is to be determined having regard to the commercial expediency and no rigid standard can be laid down, nor can the opinion of the Income-tax Officer be substituted for that of the assessee concerned, if there are materials or if the surrounding circumstances indicate that the expenditure incurred was commercially expedient. It is not in dispute that the visit of the chairman and the managing director of the foreign company was in the interest of the Indian company and was deductible as business expenditure. Having regard to the position they occupied in the foreign company and the importance of that company in furthering the business interest of the assessee-compa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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