Without questioning the business purpose of the trip,  ad hoc disallowance of foreign tour expenditure not maintainable

Case: Amit Jain Vs ITO (ITAT Kolkata)

FACTS

Assessee made a foreign trip to Kathmandu Dubai and Rome and claimed certain expenses as his foreign travel expenses.  However, the Assessing Officer required the assessee to present the evidence and also business connection for such trip. Assessee argued that foreign tour was for inspection interiors of foreign hotels and resorts.

Assessing Officer, since the appellant did not offer any evidence, he treated twenty percent of foreign trip expenses as personal in nature and disallowed a sum of Rs.29, 003/-.

However, ITAT find that none of the authorities below have refused that this is not for the purpose of business. Once it is not refused, the foreign trip expenses cannot be disallowed on ad-hoc basis.