When the board of directors of the assessee had thought it fit to spend on foreign tour
of the accompanying wife of the managing director for commercial expediency for
reasons reflected in its resolution , it was not with in the province of the income tax
authority to disallow such expenditure. There was resolution of company authorizing
foreign travel of managing director and his wife for business purposes. The Court
applied the ratio of CIT v Walchand and co P.Ltd ( 1967) 65 ITR 381 (SC). However , as
there was no resolution authorizing the wife of the deputy managing director, the
expenditure on such travel were rightly disallowed.(A. Y. 200‐01)
J.K.Industries Ltd v CIT ( 2011) 335 ITR 170 ( Cal) (High Court).
of the accompanying wife of the managing director for commercial expediency for
reasons reflected in its resolution , it was not with in the province of the income tax
authority to disallow such expenditure. There was resolution of company authorizing
foreign travel of managing director and his wife for business purposes. The Court
applied the ratio of CIT v Walchand and co P.Ltd ( 1967) 65 ITR 381 (SC). However , as
there was no resolution authorizing the wife of the deputy managing director, the
expenditure on such travel were rightly disallowed.(A. Y. 200‐01)
J.K.Industries Ltd v CIT ( 2011) 335 ITR 170 ( Cal) (High Court).
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