KAMLESH GHANSHYAMDAS THAWANI,AHMEDABAD vs. INCOME TAX OFFICER WARD 7(2)(1), AHMEDABAD, AHMEDABAD

ITA 233/AHD/2026Status: DisposedITAT Ahmedabad22 September 2026AY 2016-173 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the expenditure incurred by the company on a business trip, even if not considered a business expenditure, does not constitute income or a perquisite in the hands of the assessee. Therefore, the addition made by the AO is not sustainable.

What were the facts?

The Assessing Officer added Rs. 3,71,367/- to the assessee's income, representing the proportionate benefit of a business trip offered by a company. The company incurred the entire expenditure for the trip.

What were the issues?

Whether the proportionate benefit of a business trip sponsored by a company constitutes income or a perquisite in the hands of the dealer. Whether such expenditure can be added to the assessee's income.

Which sections of the Income-tax Act were involved?

Section 28(4)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD

Before: Shri Sanjay Garg & Shri Gangadhar Panda

For Appellant: Ms. Vidhi Pandya, AR
Hearing: 17/08/2026Pronounced: 22/09/2026

Per Sanjay Garg, Judicial Member:

The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), [hereinafter referred to as ‘Ld. CIT(A)’] National Faceless Appeal Centre (in short “NFAC”), Delhi dated 14/11/2025 passed u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year (AY) 2016-17. 2. The sole issue involved in this appeal is relating to addition of Rs. 3,71,367/- made by the Assessing Officer (hereinafter referred to as “the AO”) by calculating the proport

The order continues below.

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