The Income Tax Appellate Tribunal (ITAT) Mumbai recently granted relief to a businessman whose Rs 6.42 lakh travel expenditures were disallowed by the income tax department on the ground that he had paid for these expenses using his wife’s credit card.
Challa Nagendra Prasad, Judicial Member and G.M. Doss, Accountant Member of ITAT Mumbai, in the judgement, ruled that there is nothing in law that prevents an individual from incurring business expenditure using the credit card of his spouse and subsequently reimbursing these expenses to the spouse.
