Biz travel using wife’s credit card; ITAT allows it

The Income Tax Appellate Tribunal (ITAT) Mumbai recently ruled in favor of a businessman who had incurred business expenses using his wife's credit card and subsequently reimbursed the charges. Mr. Shah, who resides in Kanjur Village Road, Mumbai, traveled to Paris, Russia, and other locations for business purposes and spent a total of Rs 20.32 lakh on travel expenses, with Rs 6.42 lakh paid using his wife's credit card.

The Income Tax Department disputed this arrangement, arguing that the expenses were not properly explained since his wife had no involvement in his business travels. The ITAT Mumbai disagreed, stating that there is no law preventing an individual from using their spouse's credit card for business expenses and then reimbursing the charges.