LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

FOREIGN TRAVEL EXPENSES????????

27 December 2010

WHETHER FOREIGN TARVEL EXPENSES(INCLUDING AIR TICKET) OF FAMILY MEMEBERS OF A PARTNER IN A PARTNERSHIP FIRM IS ALLOWED IN INCOME TAX.

Reply
Follow
Share

3 Replies

S Sivasalapathy (Job) (262 Points)
Replied 31 December 2010

Only partners expenditure is allowed in income tax if it is business related expenditure.

Vivek Raju P (Manager) (614 Points)
Replied 01 January 2011

Agree with Siva..foreign travel expenses of the partners are only allowable and that too only if they are related to the business of the firm, it is upto the firm to establish the fact that the expenses are infact business related and are not personal in nature.

However there have been cases for example Bombay tribunal in Glaxolaboratories (India) Ltd Vs Second ITO (1986) 18 ITD 226, travel expenses of the chairman's wife on a foreign trip have been allowed when she was accompanying him on a business trip also in the case of CIT Vs Sundaram Clayton 105 Taxman 545 a similar view has been taken.

Again it depends on a case to case basis based on the facts of the case.