Rs 6.42L business travel paid via wife’s card, man gets tax notice; what ITAT said

You incur business expenses on your wife’s credit card and reimburse her. But the tax department raises an objection. This is what happened with a Mumbai-based business man, who then won partial relief from the ITAT.The Income Tax Appellate Tribunal ruled that genuine business travel expenses do not become disallowable merely because they were initially paid using his wife’s credit card and later reimbursed to her.The Income Tax Appellate Tribunal (ITAT) Mumbai has provided partial relief to a businessman after the income tax department disallowed Rs 6.42 lakh of his travel expenses because the payments had been made using his wife's credit card.In its judgment, Challa Nagendra Prasad, Judicial Member, and GM Doss, Accountant Member, held that there is no legal bar on a person using their spouse's credit card to meet business expenses and subsequently reimbursing the spouse for those payments.What the case is aboutThe ruling arose from a…