Foreign travel Exp of wives & minor children of directors not allowed
23. All the decisions cited by the assessee clearly show that the expenses not only proved to have been incurred, but they must also stand to the test of commercial expediency. Unless and until, it is shown that it is customary for the directors or the employees to attend such business meetings or so with wives and minor children, merely because the assessee says so, it cannot be assumed that the accompaniment of wife and minor children of the directors, management trainees and overseas employees was due to commercial expediency. It is not the case of the assessee that the directors or other employees of the company have declared in their returns of income the foreign travel is a perquisite. In the circumstances, we are of the considered opinion that the foreign travel expenses in respect of the wives, minor children and
others fail the test of commercial expediency and there are no valid reasons to interfere with the findings of the authorities below on the disallowance of the foreign travel expense relatable to the wives and minor children of the directors, management trainees and overseas employees of the assessee company. We therefore dismiss ground No. 2 of assessee’s appeal.
24. In the result, appeal of the assessee is allowed in part.
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