Deduction of Foreign Travel Expenses of Directors allowed: ITAT

In the matter of Arms Communications Pvt. Ltd vs ACIT the New Delhi Tax Tribunal has allowed the Deduction of Foreign Travel Expenses of Directors.

The examination of traveling expenses revealed that expenses debited under the said there were Foreign Travel Expenses to the tune of Rs. 9,15,702. According to the assessing officer, the said costs appeared personal and not incidental to the business.

ITAT Order:

4. We find from the Assessment Order itself that the assessee has explained the compulsion and utility of such tour for business purpose. The assessee is in the business of advertising with a returned income of Rs.48 ,97,260/- on 29 .09 .2015. It was the Directors of the company who have visited the local places which would augment and aid the business prospects. Hence, in the facts and circumstances of the instant case, we hold that the amount be treated as a deductible expenditure.

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