9911796707
TMI Blog2025 (1) TMI 811X X X X Extracts X X X X X X X X Extracts X X X X ..... cy expenses incurred for official purposes were reimbursed by the company directly to the credit card companies. As the company had a substantial turnover of Rs. 159 cores largely from export of it s products, keeping into consideration the confirmation given by M/s. ADF Foods that these reimbursements made to the assessee were for his official visits, keeping into consideration the fact that certain expenses which were found to be of a personal nature were not been reimbursed to the assessee by M/s. ADF Foods Ltd. and also in light of the fact that out of a turnover of Rs. 159 crores, only Rs. 4 crores were incurred towards travelling expenses, we are of the considered view that in light of these facts the addition made by the AO is liable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 40,03,034/- towards reimbursement of travelling expenses be deleted. 3. The brief facts of the case are that the assessee was the founder promoter of M/s. ADF Foods Ltd., a public limited company engaged in the business of manufacture of variety of food products including pickles, ready to eat and frozen foods. During the course of assessment, the Assessing Officer observed that the assessee was holding various credit cards of HSBC, American Express Bank, Citi Bank etc. and the assessee incurred various expenses on these credit cards during the year under consideration. On going through the statement of expenses incurred by the assessee, the Assessing Officer observed that certain payment made by the assessee for foreign travel by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to justify that the expenses were made in official business capacity by providing details of business assignments, purpose and business client meet during the foreign travel. 6. The assessee is in appeal before us against the aforesaid order passed by Ld. CIT(A) confirming the addition made by the Assessing Officer. Before us, the Counsel for the assessee submitted that both the Assessing Officer and the Ld. CIT(A) have failed to understand the nature of reimbursement. It was submitted that the assessee was the Chairman and Managing Director of M/s. ADF Foods Ltd., which was a listed company since 1993-94. The company is in the business of exporting food products like spices, pickles and ready to eat packages. The companies exports consti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as made by the company towards the Bangkok trip of the assessee, since it was for personal / leisure purposes, which was not reimbursed as per company policy. The Counsel for the assessee submitted that the total travelling expenses incurred by the company during this year were Rs. 4.6 crores, out of total turnover of 159 crores and out of the same, the disputed amount is only a sum of Rs. 40.03 lakhs. Accordingly, the Counsel for the assessee submitted that looking into the instant facts, wherein as per company policy only official expenses were reimbursed and any personal expenses incurred by the assessee on his credit card were not reimbursed to the assessee, the aforesaid addition is not liable to be sustained in the hands of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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