10 July 2009
MY client is a company assessee and hav reimburse expenses to a person who is not an employee of the assessee for travelling foreign and these expenses are incurred for the purchase of goods for the assessee whether these expenditure are allowed under Income Tax Act 1961 (Fully or Partly) Please specify the section under which it is allowed.....
Make me clear that as these expenses are incurred for foreign travelling and for a person who is not an employee of the assessee.........
Please Post your valuable suggetions as Earlier as possible........
10 July 2009
Under section 37(1) the expendture is fully allowed as if it is proved that the expenditure has been incurred inconnection with the business of the assessee.
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