Income Tax Appellate Tribunal (ITAT) on 11-05-2021 held in the case of “Talera Automobiles Private Limited Vs ACIT” declared that Bonafide Foreign travel incurred for business purposes are allowed as a deduction under the Income tax Act,1961.

Final Judgement by Income Tax Appellate Tribunal (ITAT):

On verifying the board resolution for foreign travel and the letters with the dealers, the Assessing officer has not brought anything on record to show that either the letters or their contents were not Bonafide.

The ITAT were of the considered opinion that the foreign travel expenses incurred by the assessee are genuine and meant for business purpose only.

Reference :

Click here

Disclaimer:“Information contained herein is for informational purposes only and should not be used in deciding any particular case. The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Though utmost efforts have been made to provide authentic information, it is suggested that to have better understanding and obtaining professional advice after thorough examination of particular situation.”