1

Commissioner (A) is not empowered to enhance income a new source of income vide 82ITR 9Trib) 176
1

It is assessee’s choice to select a method for determining FMV of shares vide 81 ITR (Trib) (SN) 78
1

No TP adjustment of trade receivables in case of a debt-free company vide 81ITR (Trib) (SN) 94
1

To accord registration as a charitable institution under income tax dominant purpose must be charitable and satisfies the conditions laid down us 2(15) vide 426ITR108 despite having non charitable ancillary objects meant to achieve the dominant purpose
1

Transactions with dubious entities is reason enough for case reopening vide 421ITR624

Travel expenses of family members of employee is personal nature expense

ByCA Gopal Nathani

Nov 5, 2022

The Tribunal in [2022] 29 ITR (Trib)-OL 127 (ITAT[Del]) held that unless the visit of the family members of the directors had any nexus with the business contingencies/necessities such as when employee is out on a deputation etc., the expenses incurred are not deductible being personal in nature.

Tax auditors therefore may seek such details for their disclosure of any kind of travel expenses of family members of employees otherwise than under any business nexus. In this case the company by resolution claimed that presence of spouses were required when managing director attended conference and social gatherings. This resolution did not gel with the tribunal either.