ITAT Mumbai allows business travel costs paid via spouse's credit card
The Mumbai ITAT ruled that a businessman can claim travel expenses charged to his wife's credit card, overturning a tax disallowance of Rs 6.42 lakh.
A Mumbai businessman incurred Rs 20.32 lakh in foreign travel expenses, including Rs 6.42 lakh charged to his wife's credit card, which he later repaid. The Income Tax Assessing Officer disallowed the amount, arguing the spouse had no business connection. The ITAT Mumbai, presided over by Judicial Member Challa Nagendra Prasad and Accountant Member G.M.
Doss, ruled that law does not forbid such payments and that the reimbursement was not a taxable service. Consequently, the Rs 6.42 lakh disallowance was deleted, and other ad-hoc deductions were also removed. However, the tribunal remanded the issue of a Rs 4,36,400 income discrepancy between Form 26AS and the taxpayer's books back to the Assessing Officer for verification.
The tribunal cited a similar 2026 ruling in the Girish Raghavan case as precedent. Tax advisors warned that proper documentation is essential when using family members' cards for business spend.
Why it matters
It clarifies that business expenses can be paid through a spouse's credit card if fully documented, affecting tax compliance for many taxpayers.
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