Itxa/1195/2008 Of The Commissioner Of Income Tax-1, Nashik 422 002 v. Autocop (India) Pvt. Ltd., Nashik

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.1195 OF 2008 The Commissioner of Income Tax-I,Nashik-2 ..Appellant V/s. Autocop (India) Pvt. Ltd...RespondentNashik Mr. Vimal Gupta for AppellantMr. S.N.Inamdar for Respondent P.C.: 1.The main question which arises in this appealwas whether the Tribunal was right in holding that theexpenditure of Rs.28,38,000/- incurred by the assesseeon foreign travel of the same directors was allowableas business expenditure considering the evidencebrought on record by the Assessing Officer and CIT (A)which proves that the business assessee did not requireany foreign travel. 2.From the order of Commissioner (Appeal), anappeal was preferred before the ITAT by the assessee.Before ITAT, it was pointed out that for the assessmentyear 2004-05, the Assessing Officer after detailedanalysis on similar travel expenses has concluded thatthose are in the nature of business expenditure and have to be allowed in the light of the evidence laid.The ITAT then observed that there is no dispute thatthe travelling expenses incurred in the year underconsideration are similar in nature and spent on travelof the same directors and for the similar purpose oftrade fairs and meetings. Questions framed on behalfof the review pertains to this aspect. However, it isnot disputed that for the assessment year 2004-05similar expenses were considered in nature of businessexpenditure and that for the assessment year inquestion the expenses are similar. 3.We may further note that the Tribunal alsorelied on the judgment of the Supreme Court in the caseof Session J.David & Co.P.Ltd. V/s. CIT (1999) 118ITR 261 where the Supreme Court traced the history ofSection 37 (1) of the Income Tax Act. 4.Considering the finding of fact recorded by theTribunal based on the earlier order of the AssessingOfficer for the Assessment year 2004-05 and thejudgement of the Supreme Court in the case of SessionJ.David & Co.P.Ltd. V/s. CIT (1999) 118 ITR 261 inour opinion, the question of law does not arise andconsequently, the present appeal is dismissedaccordingly. ( R.S. MOHITE,J.)( F.I. REBELLO,J)