Foreign travel expenses for business purpose: Allowed or disallowed

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.

Pre-requisites to consider foreign travel as bonafide :

Facts of the case “Talera Automobiles Private Limited Vs ACIT”:

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 :

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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.”

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Prepared By

Swathi R

CA Final

Date: 20-10-2021