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TMI Blog2019 (1) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... Godara, JM For The Appellant : Shri Sunil Surana, CA For The Respondent : Shri Robin Chaudhury, Sr. DR ORDER Per S.S. Godara, JM 1. This assessee s appeal for assessment year 2014-15 arises against the CIT(A)-17, Kolkata s order dated 27.03.2017 passed in case no. 129/CIT(A)-17/Kol/14-15, involving proceeding u/s 143(3) of the Income Tax Act, 1961 (in short the Act ). Heard both the parties. Case file perused. 2. The assessee s former substantive ground challenges correctness of both the lower authorities action disallowing its foreign travel expenditure claim of ₹ 32,33,865/- relating to its director s son Shri Yashbardhan Kejriwal. Its case throughout has seen that it had incurred the impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to his studies were held by the AO to be not wholly and exclusively incurred for the purpose of the business of the asessee and accordingly the same was disallowed. With regard to the remaining sum of ₹ 5,15,759/- the AO held that the assesee failed to establish the business connection of these expense and therefore the entire foreign travelling expenses of ₹ 22,01,093/- was disallowed and added to the total income of the assessee. 14. On appeal by the assessee the CIT(A) confirmed the order of the AO observing as follows :- I have considered the submissions of the authorized representative of the appellant as well as the assessment order framed in the light of the materials available on record before the assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee company irrespective of the fact whether the company has continued business activities or earned profit. 17. It is thus clear that the fact that the person who undertook the foreign travel was not an employee of the asessee at the time of undertaking foreign travel cannot be the basis for any disallowance of expenses. In the present case Mr. Yash Kajriwal served the assessee company after completing studies abroad as per Agreement with the assessee company. Since the disallowance of a sum of ₹ 16,85,334/-being expenses for sponsoring higher education of Shri Yash Kajriwal was disallowed only on the basis that he was not an employee, the disallowance is directed to be deleted. 3. Learned departmental representative fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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