The appellant, living in Japan had filed her return of income in the status of an NRI disclosing the capital gains on sale of a property. She had travelled to India from Japan on number of occasions in connection with transfer of the subject property. The detailed breakup of such visits in terms of travel dates, purpose and place of visits had been submitted during the course of assessment proceedings and was on record. The appellant had also submitted that she had to meet her advisors and prospective buyers from time to time requiring her to travel. Being the co-owner and holding 1/3rd share in the property, she was present in India to execute various documents such as execution of MOU, conveyance deed, sale deed etc. The necessity of her presence in India and execution of the various documents related to sale of the property were not disputed by the lower authorities. It was, thus, seen that the appellant had proved the direct linkage / nexus between her travel to India and the corresponding travel expenditure with the transfer of the property, capital gains arising out of which have been duly offered to tax. The Hon’ble Tribunal, therefore, deleted the disallowance of the travelling expenditure and held the same as an allowable deduction under section 48(i) of the Act.
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