Archive · 13 Sep 2026
Mumbai ITAT Grants Partial Relief in Wife’s Card Travel Case
A Mumbai businessman travelled abroad for work and claimed money spent on those trips as business expenses.
Some of the bills were paid using his wife’s credit card.
Tax officials questioned this because the card was not in the businessman’s name.
They also said he had not provided enough details about some foreign trips.
Another problem was that two tax records showed different income amounts.
The businessman appealed after an earlier appeal was rejected.
The Mumbai ITAT gave him some relief on the credit-card travel expense.
It asked the tax officer to check the income difference again.
A Mumbai businessman claimed ₹20.32 lakh in professional travel expenses, including ₹6.42 lakh paid through his wife’s credit card.
The income tax department rejected the ₹6.42 lakh claim, saying the payment remained unexplained because the card belonged to his wife.
The assessing officer also disallowed part of cash-paid expenses and 20% of ₹12.4 lakh in foreign travel expenses for insufficient details.
The department sought to tax a ₹4,36,400 mismatch between income shown in Form 26AS and the businessman’s books.
On August 31, 2026, the Mumbai ITAT granted partial relief on the credit-card issue and sent the income mismatch back for verification.
- Who
- A Mumbai businessman, the income tax department, and the Income Tax Appellate Tribunal.
- What
- A dispute over business travel deductions paid partly with the businessman’s wife’s credit card, along with an income mismatch.
- When
- The tribunal issued its ruling on August 31, 2026; the assessment and appeals occurred earlier.
- Where
- Mumbai, involving travel to Paris, Russia, and other countries.
- Why
- The tax department questioned whether the expenses were sufficiently explained and whether the income reported in the books matched Form 26AS.
Taxpayer’s Position
Tax Department’s Position
Credit-card travel expenses
Taxpayer’s Position
The businessman said the ₹6.42 lakh was spent on professional travel and reimbursed his wife after he returned to India.
Tax Department’s Position
The department said the amount remained unexplained because the expenses were paid using his wife’s credit card and she had no connection with the business travel.
Foreign travel documentation
Taxpayer’s Position
The businessman claimed the travel expenses as business expenditure.
Tax Department’s Position
The assessing officer said details such as the travellers’ identities and the services they rendered were not provided, and disallowed 20% of the relevant amount.
Income mismatch
Taxpayer’s Position
The businessman’s books reported income of ₹75.51 lakh.
Tax Department’s Position
Form 26AS showed ₹79.87 lakh, so the department sought to bring the ₹4,36,400 difference to tax; the tribunal ordered further verification.
- Total travel expenses
- ₹20.32 lakh
- Travel expenses paid with wife’s credit card
- ₹6.42 lakh
- Cash-paid travel expenses
- ₹1.49 lakh; the assessing officer disallowed 20%.
- Foreign travel expenses reviewed
- ₹12.4 lakh; the assessing officer disallowed 20% for missing details.
- Income in Form 26AS
- ₹79.87 lakh
- Income in books of account
- ₹75.51 lakh
- Income difference
- ₹4,36,400